Rent to Own Calculator
Rent-to-Own Analysis
Analyze the cost and equity of a rent-to-own agreement
$
$
$
$
$
Rent-to-Own vs. Traditional Rent
Compare rent-to-own costs to regular renting
$
$
$
$
Formula
Remaining Price = Purchase Price − (Rent Credits × Months + Option Fee) | Total RTO Cost = Monthly Payment × Months + Option Fee
Frequently Asked Questions
How does rent-to-own work?
In a rent-to-own (lease-option) agreement, you rent a home with an option to purchase it at a predetermined price within a set period (1-5 years). You pay an upfront option fee and typically higher-than-market rent, with a portion credited toward the purchase price.
What happens if I don't buy the home?
If you don't exercise the purchase option, you typically lose the option fee and any rent credits accumulated. The extra premium you paid above market rent is also lost. Some contracts may allow extension of the option period for an additional fee.
Is rent-to-own a good idea?
Rent-to-own can help buyers who need time to build credit, save a down payment, or test a neighborhood. However, the premium costs, risk of losing the option fee, and locked purchase price (which might end up above market) are downsides. Always have a real estate attorney review the contract.
You may also need
$
Rent vs Buy Calculator
Free rent vs buy calculator. Compare the long-term costs of renting versus buying a home over a given time period.
Finance$
Mortgage Calculator
Free mortgage calculator. Estimate monthly mortgage payments, total interest, and amortization for your home loan. Compare different rates and terms.
Finance$
Rent Affordability Calculator
Free rent affordability calculator. Find out how much rent you can afford based on the 30% rule and 50/30/20 budget. Calculate your maximum monthly rent payment.
Finance