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House vs Condo Calculator

Which property makes more financial sense?

About this calculator

A condo usually costs less to buy than a comparable house, but the monthly HOA dues, the risk of special assessments and often slower price growth can close the gap. A house costs more upfront and in maintenance, yet everything it gains in value is yours. Comparing the price tags alone misses most of this. This calculator puts a house and a condo side by side with the same down payment share and loan terms, adds up what each costs to own over the years you plan to stay, and subtracts the equity you would keep after selling, so you can see which property is cheaper to own overall.

How to use this calculator

In the shared section, enter the Down Payment as a percentage of each price, the Mortgage Rate and the Years You Plan to Own. Then fill in each property: price, property tax as a percentage of value, insurance per year, HOA dues per month, maintenance as a percentage of value and expected appreciation. For the condo you can also set aside a Special Assessment Reserve each year for one-off charges the association may levy. Under Advanced assumptions you can change the loan term and the selling costs. Every input is saved in the page address, so you can share or bookmark the comparison.

The method

Each property gets its own fixed-rate loan for its price minus the down payment. The monthly cost of ownership is principal and interest plus property tax, insurance, HOA dues, maintenance and, for the condo, the special assessment reserve. Property tax and maintenance are a percentage of the property's value, and insurance, HOA dues and the reserve rise each year in line with that value, so a property that appreciates faster also costs more to carry. Total paid is the down payment plus every monthly cost over the years you own. Equity is the property's value at the end, minus selling costs and the remaining loan balance. Net cost of ownership is total paid minus that equity: what owning the property really cost you once you sell. The property with the lower net cost wins.

Worked example using the default values

A $425,000 house and a $350,000 condo, both with 20% down and a 6.25% 30-year loan. The house's first month costs $3,214: $2,093 of principal and interest, $390 of property tax, $200 of insurance and $531 of maintenance. The condo's costs $2,766: $1,724 of principal and interest, $321 of tax, $75 of insurance, $450 of HOA dues, $146 of maintenance and $50 for the special assessment reserve. Over 10 years you pay $494,000 for the house and $416,923 for the condo. At 3.5% appreciation the house is worth $599,504 after 10 years, leaving $277,126 of equity after 6% selling costs and the $286,408 loan balance; the condo, at 2.5%, is worth $448,030 and leaves $185,282. The net cost is $216,874 for the house and $231,641 for the condo, so the house costs less by $14,767, even though its monthly cost is higher.

Interpreting the results

The headline names the property with the lower net cost and by how much. The monthly cost tells you what each property demands from your budget; the net cost tells you what each really costs once the equity you build is counted. They often point in different directions, as in the default example, where the condo is cheaper every month but the house builds more equity. The side-by-side table breaks both figures down, and the chart shows the net cost year by year, so you can see whether the answer changes with a shorter or longer stay. Appreciation drives much of the result: with the condo also at 3.5% a year, the condo would cost less by $21,572.

Practical tips

Before buying a condo, read the association's budget and reserve study, and ask about planned projects, past special assessments and any pending litigation; a well-funded reserve lowers the risk of a large assessment. Check what the HOA dues cover, since some include water, trash, heat or amenities you would pay for separately in a house. For a house, budget more for maintenance on an older home or one with a large lot, and get an inspection estimate for the roof and major systems. Get insurance quotes for both, because a condo's HO-6 policy covers far less than a full homeowners policy.

Limitations

Appreciation and costs are smooth and constant here, while real values and HOA dues can jump. The comparison does not count what you could earn by investing the house's larger down payment and monthly cost difference, which favors the condo. It also leaves out closing costs, PMI with less than 20% down, income taxes and the mortgage interest deduction. Condos can also be harder to finance when an association has low reserves or many rented units. Results are estimates for planning, not financial advice.

Frequently Asked Questions

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