How to calculate how long it takes to break even on a mortgage?

[KingGheedora]

Suppose you buy a home or condo for $P, at i% interest. What is the formula to calculate which point in time you will break even by selling the home/condo for the same price you bought it for?

Assume you make $100k with no other investments besides the property (so take into account the take break on paying off interest).

 

[KingGheedora]

I'm a software engineer, I'm not a student. I know someone will post "do your own homework" so I'm pre-empting them. I know they will still post it regardless.

 

[Epic Fail]

What are you trying to ask?

 

[bhanson]

http://www.nytimes.com/interactive/business/buy-rent-calculator.html

 

[Alone]

Durrr...

 

[TuxDave]

http://www.nytimes.com/interactive/business/buy-rent-calculator.html

I'm kind of amazed that you were able to take the badly worded question from the OP and infer that he meant break even when compared to rent.

 

[KingGheedora]

Durrr...

I searched for that before posting. All the results are about breaking even on mortgage refinance.

 

[KingGheedora]

http://www.nytimes.com/interactive/business/buy-rent-calculator.html

Thanks, exactly what I wanted.

 

[Capt Caveman]

Suppose you buy a home or condo for $P, at i% interest. What is the formula to calculate which point in time you will break even by selling the home/condo for the same price you bought it for?

Assume you make $100k with no other investments besides the property (so take into account the take break on paying off interest).

You can't, unless you can predict the future.

 

[WildHorse]

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[wiredspider]

I'm kind of amazed that you were able to take the badly worded question from the OP and infer that he meant break even when compared to rent.

Yea, I can't get that from what the OP was talking about... An engineer should know better...

 

[Hacp]

You're a software engineer but you can't program your own C++ code to quickly solve the problem? Huh?

 

[xSauronx]

You're a software engineer but you can't program your own C++ code to quickly solve the problem? Huh?

you mean he cant use excel to create a table after using something like the pmt, ipmt or whatever formulas to find all the data he needs?

 

[HardcoreRobot]

what a terribly worded question. in what world can you sell a house for the same price you bought it and break even, when you are paying interest on a loan?. nowhere do you mention refinancing.

many props to AT for deciphering

 

[Juddog]

Wow I ran through the calculator and in my area it's better to rent up to year 13!