Most people comparing rent to a mortgage are doing the math wrong. They look at the monthly payment and stop there.
But a mortgage payment isn't just an expense. Part of it builds equity every month. The interest and property taxes are tax deductible. The asset itself appreciates while you own it. Rent does none of that.
When you add up what ownership actually returns, the true cost is almost always lower than what you're paying to rent.
Most buyers compare their mortgage payment to rent and stop there. But that comparison misses the full picture.
This tool walks you through what homeownership really costs each month by factoring in three things most people overlook:
When you subtract these benefits from your monthly payment, the true economic cost of owning is often dramatically lower than what you'd pay in rent — and you're building long-term wealth in the process.
This tool is for educational and illustrative purposes only. It does not constitute tax, legal, or financial advice.
Step 1 of 4
All calculations flow from these inputs.
Step 2 of 4
Step 3 of 4
This determines how much additional write-off you actually gain from owning a home.
Step 4 of 4
Use the 2026 table to find your marginal rate.
Your marginal rate applies only to income in that bracket — not your entire income.
What does "true cost" mean? Every month, part of your payment pays down your loan (building equity like a savings account) and your home is likely growing in value. Subtract those gains from what you pay, and the real cost of owning is much lower than the check you write.
Disclaimer: For illustration only — not tax, legal, or financial advice. Consult a licensed CPA or tax advisor before making decisions based on these figures.
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