Not financial advice. Mortgage FV Calculator is a software calculator, not a personal-finance product or advisory service. It computes standard financial functions and displays the results for your convenience. Nothing here constitutes, or is intended to constitute, financial, investment, tax, legal, mortgage, credit, or insurance advice. Always consult a qualified professional before making any financial decision.
NPV of buying a home in Florida
Every cash flow of owning a median-priced Florida (FL) home — payments out, rent avoided, equity and sale proceeds in — discounted at 5% and compared with the same money invested elsewhere.
Positive NPV: the purchase clears the hurdle
At 6.75% on a 30-year loan with 10% down, the net present value works out to $103,523, an internal rate of return of 6.86%. That means the deal beats putting the same cash into a 5% alternative — provided the 3.5% appreciation and $2,200 rent assumptions hold.
Valuation
| NPV at a 5% discount rate | $103,523 |
|---|---|
| NPV at the Fisher-adjusted real rate (2.44%) | $388,798 |
| IRR (nominal) | 6.86% |
| IRR in real terms | 4.26% |
The real row re-runs the same cash flows at the Fisher-adjusted discount rate — 2.44% once 2.5% inflation is removed from the 5% nominal hurdle. A lower hurdle values distant equity more highly, which is why the real figure is the larger of the two.
The inputs behind it
| Median home price | $410,000 |
|---|---|
| Loan amount | $369,000 |
| Principal & interest | $2,393/mo |
| All-in monthly (PITI + PMI) | $3,291/mo |
| Rent avoided by owning | $2,200/mo |
| Total interest over the term | $492,598 |
| Projected home value at payoff | $1,150,785 |
0.79% effective property tax, $5,500 annual insurance, 3% closing costs, 6% selling costs and 1% annual maintenance. Illustrative averages, not quotes.
What is specific to Florida
Insurance, not tax, is the swing factor. Wind and flood coverage can add more to the monthly payment than a full point of interest.
Compare lenders
SponsoredWe may earn a commission if you apply through these links. This does not affect your rate, and it is not a recommendation or financial advice.
| Lender | Best for | Highlight | Min. down | Apply |
|---|---|---|---|---|
| LendingTreePopular | Comparing multiple offers | Up to 5 lender offers in minutes | 3% | See rates |
| Credible | Soft-pull pre-qualification | Pre-qualify without a credit hit | 3% | See rates |
| Bankrate | Daily rate research | Live rate tables across major lenders | 3.5% | See rates |
| Rocket Mortgage | Fully online closing | Digital application and verification | 3% | See rates |
NPV in other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming