Formula summary
- Bank final value: starting cash + after-tax compounding + recurring deposits
- Condo final value: leftover cash growth + rental cash flow + net sale proceeds
- Break-even sale price: the sale price that makes both strategies equal
Money / United States
Bank deposit vs rental condo calculator
Compare the ending value of a bank deposit with the value of buying a condo, renting it out, and selling it later.
Compare the two strategies
The condo strategy assumes any unused cash stays in the bank deposit so the comparison uses the same starting capital.
Use a 3-letter ISO code such as USD, THB, MXN, or JPY.
Total capital you can use today
How long you keep the money or condo
Extra money you add to the bank deposit each compounding period
Nominal annual rate before tax
The bank deposit grows on this schedule
If interest is taxable, the calculator reduces earned interest by the tax rate
Used only when tax mode is turned on
Condo purchase
Rental income
Condo expenses
Final sale
Budget warning
Side-by-side comparison
The table below shows the main cash flows used in the comparison. The condo strategy keeps any unused cash in the bank deposit so both choices start with the same capital.
| Metric | Bank deposit | Rental condo |
|---|---|---|
| Initial cash available | - | - |
| Cash deployed today | - | - |
| Leftover cash held in bank | - | - |
| Periodic deposit | - | - |
| Rental cash flow | - | - |
| Net sale proceeds | - | - |
| Final value | - | - |
Assumptions
- Unused cash from the condo option is kept in the bank deposit
- Mortgage payments are monthly
- Occupancy and rent growth stay constant through the holding period
- Tax is applied only to bank interest when tax mode is enabled
Quick example
Suppose you have $100,000. The bank option earns 4% interest. The condo costs $240,000, needs $60,000 down plus closing and renovation costs, earns rent, and is sold after 5 years.
The calculator compares the final value of both choices and shows the sale price needed for the condo to break even.
Common mistakes
- Forgetting to include closing or renovation costs
- Using gross rent instead of rent after occupancy
- Ignoring mortgage payments or the remaining loan balance at sale
- Assuming the condo has no holding costs such as HOA or maintenance
Need help?
Read the full instructions and assumptions for this calculator.