R$ 400,000 SAC over 30 years
- Input
- 11,5% a.a. nominal
- Expected output
- 4.944 -> 1.122 | juros 614.611
First and last payment, before insurance, and total interest.
Carregando ferramenta… / Loading tool…
is it worth buying a home with a loan or renting
Enter the property price, down payment, rent and horizon in the calculator. It simulates the loan month by month and the rental with the difference invested, then shows which path ends with more net worth and from which year buying moves ahead.
First and last payment, before insurance, and total interest.
Lower payment at the start, R$ 217,811 more interest.
Renting and investing finishes ahead.
Buying moves ahead and stays there through year 20.
Appreciation alone flips the verdict.
The exit cost delays the tie by three years.
It depends on two bets: how much the property appreciates and how much invested money earns. In an example with a R$ 500,000 property, R$ 100,000 down, a 30-year SAC loan at 11.5% a year, 5% appreciation, fixed income at 10% gross and rent adjusted 4.5% a year, buying and renting tie after 20 years when the starting rent is about R$ 2,972. With R$ 2,500 rent, renting and investing finishes ahead; with R$ 3,500, buying pulls ahead from year 5. That is why the tool shows a break-even rent and a sensitivity table instead of a single number.
Neither is money thrown away. In a mortgage, interest, insurance and taxes are also costs with no return; only the principal repayment becomes equity. In renting, what is left over earns a return when invested. The simulation puts both sides on the same net worth yardstick.
The time you actually plan to stay in the property. Short horizons penalize buying, because transfer tax, registry fees and early interest weigh most at the start. If you might move cities in five years, simulate five.
Add the FGTS amount to the down payment. The simulation assumes that money, if not spent on the property, would stay invested, which is a simplification: FGTS earns less than fixed income.
After 20 years, Rent and invest finishes ahead of Buy with a loan by R$2,366,901 in net worth.
With these assumptions, buying does not overtake renting and investing within 20 years.
Assumptions: property appreciates 4.7% a year, fixed income yields 14.8% gross a year, rent of R$2,500 adjusted 4.7% a year, loan at 11.5% a year.
R$6,707,583
R$6,316,589
R$9,074,484
Break-even rent: the starting rent at which buying and renting end equal. Break-even appreciation: the yearly appreciation at which that happens, other assumptions unchanged.
| Appreciation \ yield | 10.8% | 12.8% | 14.8% | 16.8% | 18.8% |
|---|---|---|---|---|---|
| 0.7% | -R$812.8K | -R$1.8M | -R$2.9M | -R$4.2M | -R$5.9M |
| 2.7% | -R$584.9K | -R$1.6M | -R$2.7M | -R$4.0M | -R$5.8M |
| 4.7% | -R$244.4K | -R$1.3M | -R$2.4M | -R$3.7M | -R$5.5M |
| 6.7% | +R$256.9K | -R$776.9K | -R$1.9M | -R$3.2M | -R$5.1M |
| 8.7% | +R$986.4K | -R$59.7K | -R$1.2M | -R$2.6M | -R$4.4M |
Positive (green): buying finishes ahead. Negative (amber): renting and investing finishes ahead. The outlined cell is your scenario.
| Year | Buy with a loan | Buy in cash | Rent and invest | Property value | Loan balance |
|---|---|---|---|---|---|
| 0 | R$500,000 | R$500,000 | R$522,500 | R$500,000 | R$400,000 |
| 1 | R$584,193 | R$587,673 | R$622,358 | R$523,500 | R$386,667 |
| 2 | R$679,679 | R$682,870 | R$737,428 | R$548,104 | R$373,333 |
| 3 | R$788,270 | R$787,095 | R$870,574 | R$573,865 | R$360,000 |
| 4 | R$904,707 | R$901,268 | R$1,015,014 | R$600,837 | R$346,667 |
| 5 | R$1,033,679 | R$1,026,725 | R$1,177,158 | R$629,076 | R$333,333 |
| 6 | R$1,176,913 | R$1,165,047 | R$1,359,627 | R$658,643 | R$320,000 |
| 7 | R$1,336,386 | R$1,318,039 | R$1,565,425 | R$689,599 | R$306,667 |
| 8 | R$1,514,362 | R$1,487,767 | R$1,798,000 | R$722,010 | R$293,333 |
| 9 | R$1,713,431 | R$1,676,598 | R$2,061,310 | R$755,945 | R$280,000 |
| 10 | R$1,936,562 | R$1,887,242 | R$2,359,895 | R$791,474 | R$266,667 |
| 11 | R$2,187,154 | R$2,122,801 | R$2,698,967 | R$828,674 | R$253,333 |
| 12 | R$2,469,104 | R$2,386,832 | R$3,084,503 | R$867,621 | R$240,000 |
| 13 | R$2,787,623 | R$2,684,156 | R$3,524,116 | R$908,399 | R$226,667 |
| 14 | R$3,150,921 | R$3,022,532 | R$4,028,772 | R$951,094 | R$213,333 |
| 15 | R$3,565,448 | R$3,407,898 | R$4,608,097 | R$995,796 | R$200,000 |
| 16 | R$4,038,626 | R$3,847,082 | R$5,273,161 | R$1,042,598 | R$186,667 |
| 17 | R$4,578,947 | R$4,347,901 | R$6,036,654 | R$1,091,600 | R$173,333 |
| 18 | R$5,196,155 | R$4,919,317 | R$6,913,144 | R$1,142,905 | R$160,000 |
| 19 | R$5,901,426 | R$5,571,614 | R$7,919,355 | R$1,196,622 | R$146,667 |
| 20 | R$6,707,583 | R$6,316,589 | R$9,074,484 | R$1,252,863 | R$133,333 |
Simulation with editable assumptions, not investment advice. It leaves out capital gains tax, vacancy, FGTS and home insurance.