True Cost of Homeownership Calculator
Enter price, mortgage terms, running costs and expected appreciation.
Net cost of ownership
β
Enter values above
Total paid out
β
Final property value
β
Equity at the end
β
Average monthly cost
β
Remaining mortgage balance
β
Worked example
With the default inputs shown below, this calculator returns the following results:
| Input | Value |
|---|---|
| Purchase price ($) | 400000 |
| Down payment ($) | 80000 |
| Mortgage rate (%) | 6.5 |
| Mortgage term (years) | 30 |
| Property tax (% of value per year) | 1.1 |
| Insurance ($ per year) | 1800 |
| Maintenance (% of value per year) | 1 |
| HOA ($ per month) | 0 |
| Annual appreciation (%) | 3 |
| Years held | 10 |
| Result | Value |
|---|---|
| Net cost of ownership | $158,431 |
| Total paid out | $424,714 |
| Final property value | $537,567 |
| Equity at the end | $266,283 |
| Average monthly cost | $1,320 |
| Remaining mortgage balance | $271,284 |
Values shown are produced by this page in your browser; change any input to update them.
How to use the True Cost of Homeownership Calculator
- Purchase price ($) β default 400000
- Down payment ($) β default 80000
- Mortgage rate (%) β default 6.5
- Mortgage term (years) β default 30
- Property tax (% of value per year) β default 1.1
- Insurance ($ per year) β default 1800
- Maintenance (% of value per year) β default 1
- HOA ($ per month) β default 0
- Annual appreciation (%) β default 3
- Years held β default 10
- Press Calculate to update the results instantly.
Frequently asked questions
Because you pay interest, tax, insurance and maintenance along the way, then recover whatever the property is worth minus the remaining mortgage. The net figure is the real cost of living there.
It can β at 3% a year the example roughly halves the net cost over ten years. But appreciation is an assumption, not a guarantee, and losses magnify when you use a mortgage.
Tax deductions on mortgage interest, closing costs when buying and selling, and the opportunity cost of the down payment. All three are material over a long holding period.