How to use the bank deposit vs rental condo calculator

What this calculator does

It compares the value of keeping your money in a bank deposit with buying a condo, renting it out, and selling it later.

Who should use it

Buyers, landlords, and investors who want a simple first pass at the cash-flow trade-off between a bank deposit and a rental condo.

Input definitions

• Currency code: ISO currency code used for formatting the result
• Initial cash available: total capital you can use today
• Holding period: how long you keep the money or condo
• Additional deposit per period: extra money you add to the bank deposit each compounding period
• Bank interest rate: annual interest rate before tax
• Tax mode and tax rate: whether to reduce bank interest by tax
• Condo purchase price, cash used, loan amount, mortgage rate, and term: the purchase and financing setup
• Rental income: monthly rent, occupancy rate, and rent growth
• Condo expenses: HOA, property tax, insurance, maintenance, management, leasing, and other annual expenses
• Final sale: expected sale price and selling cost

Formula summary

• Bank: compound the starting cash, apply tax to bank interest if needed, and add recurring deposits
• Condo: subtract mortgage payments and expenses from rent, add leftover cash growth, and include the final sale proceeds
• Break-even sale price: solve for the condo sale price that makes the two choices equal

Assumptions

• Unused cash from the condo option stays in the bank deposit
• Mortgage payments are monthly and the loan balance falls with each payment
• Occupancy and rent growth remain constant during the holding period
• Bank interest tax applies only when tax mode is enabled
• This is a simplified model and not a full legal, tax, or financing analysis

Example calculation

Imagine you have $100,000 available. A condo costs $240,000, with a $60,000 down payment, $5,000 closing cost, and $5,000 renovation cost.

The condo rents for $1,200 per month, stays 95% occupied, grows rent by 3% per year, and is sold after 5 years.

The calculator compares that strategy with leaving the full $100,000 in a bank deposit.

How to interpret the result

A positive difference means the rental condo strategy ends with more value than the bank deposit strategy.

The break-even sale price shows how high the condo must sell for the two choices to end at the same value.

The annualized advantage is an approximate comparison over the holding period, so it should be read as a planning signal rather than a guaranteed return.

Common mistakes

• Using monthly rent before occupancy is applied
• Forgetting that closing and renovation costs reduce the cash available for other uses
• Ignoring the remaining mortgage balance when the condo is sold
• Assuming the bank option has no tax when interest is actually taxable

Limitations and disclaimers

• This calculator is for educational comparison only
• It does not include every tax rule, legal cost, financing restriction, or market risk
• Actual condo selling prices, rent collection, and maintenance costs may differ from the assumptions
• Use professional advice before making real investment decisions

Country-specific notes

The structure is global, but property tax, transfer fees, condo rules, and rental restrictions vary by country and city. Check local rules before relying on the output.