This tool will help you calculate the total cost of renting to own a property, including monthly payments and overall expenses.
How to Use the Rent to Own Calculator
The Rent to Own Calculator calculates the total cost of renting to own a property based on several parameters you input.
Instructions:
- Enter the Purchase Price of the property.
- Enter your Initial Deposit.
- Enter the Monthly Payment you will be making.
- Enter the Term in Years over which you will make payments.
- Enter the Interest Rate (annual percentage).
- Enter the Down Payment Rate (percentage).
- Click Calculate to see the total cost and other results.
How It Calculates:
The calculator uses the following approach:
- Interest Rate: Converts the annual interest rate to a monthly rate.
- Total Payments: Multiplies the monthly payment by the total number of payment months (years * 12).
- Total Cost: Adds the initial deposit to the total payments.
Limitations:
The calculator assumes a fixed interest rate and monthly payment. It does not take into account taxes, insurance, or other potential costs. Actual costs can vary based on personal financial circumstances and changes in terms.