Mortgage vs Renting calculator

Yet another calculator to answer the question as old as time:

Is it better to mortgage an apartment, or rent and invest the difference instead?

Insert the details of the apartment you wish to buy and the corresponding monthly rent for the same apartment.

This calculator considers the down payment as an investment during the period and also invests the difference between the mortgage payment and the rent. This assumes that rent is lower than the mortgage payment—if it isn’t, this calculator won't work properly and you should probably just buy the apartment 😅

To view the code or customize the calculation, click the Edit button in the top-right corner and duplicate the project into your own Deepnote workspace. You can use Deepnote AI to edit code or the visualizations.

Rent

Mortgage

📊 Result

Since the cash flow from our pocket remains the same in this model — covering equal monthly payments for both the mortgage and rent (including investments) — the only significant factor is the value of the assets after a given period. In the case of a mortgage, the assets represent equity in real estate, while for renting, they represent equity in investments.

More data

In the chart below, you can see additional data, such as the total amount of money paid for mortgage or rent, as well as the trends in equity and investment over time.

If you’re wondering why the amount of loan paid off isn’t exactly halved after half the time has passed, it’s because of how amortization works. TL;DR: To ensure your payments remain the same throughout the entire period, you pay more interest at the beginning of the schedule.

That's it! If you have any questions, feel free to contact me here https://x.com/patresk_