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How to use
- Enter Monthly rent.
- Enter Monthly ownership cost.
- Calculate, then review what is included in the definition before making a financial decision.
How it is calculated
Difference = ownership cost − rent
Example
Rent of 5,000 versus ownership cost of 4,700 means ownership is 300 lower monthly, or 6% of rent in this simplified cash comparison.
Important notes
This is a monthly cash comparison only. It excludes equity build-up, transaction costs, appreciation and opportunity cost.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Monthly difference | 4700 − 5000 | -300 |
| Percent of rent | -300 ÷ 5000 × 100 | -6 % |
Frequently asked questions
Does a negative result mean owning is cheaper?
Under this calculator's definition, yes for the entered monthly cash costs only, not necessarily over many years.
Is this a loan approval or credit decision?
No. This is a numerical calculator only; lenders may use different income, debt, appraisal and fee policies.
Should I use gross or net income?
Use the income type named by the field. Do not substitute net for gross because it changes the denominator and result.