Formula
Owning adds the mortgage payment to the housing bills you type:
Gap = |rent − (principal and interest + tax + insurance + upkeep)|
This is a monthly cash comparison. It does not price appreciation, repairs beyond the upkeep figure, or the tax treatment of interest.
Assumptions
- The mortgage rate stays fixed.
- Upkeep is the monthly amount you type, not a repair forecast.
Worked example
Rent of $2,200 against a $300,000 home with $60,000 down leaves a monthly gap of $183.04.
Input definitions
- Monthly owning
- Mortgage principal and interest plus tax, insurance, and upkeep.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
Does buying build equity here?
The monthly gap does not credit you for principal you pay down or for a change in the home's value.
Which result is the hero?
It is how much more the more expensive choice costs each month.