Home Ownership Calculator


Page: 1 2 3 4 of 4	Yellow Pig's Index

The Calculator

This calculator is shareware. If you like it, please make a $10 donation using the PayPal button below. Or if you would like to send us a check, the directions are in the resulting spreadsheet.

DISCLAIMER: The calculations performed by this program are accurate to our best knowledge. There will be minor discrepancies between our numbers and the actual numbers. For example, very small differences arise because in the real world, all amounts are rounded to the nearest cent. Other differences come from simplified tax calculations and the accuracy of estimating your expenses and incomes.

Enter the total cost of your home below. This includes the price of the home, points and fees, moving expenses, new furniture, etc.
Total price:

Loan amount:

Interest only loan

Loan type:

If you choose a "Custom" mortgage above, please fill in the following two blanks. Otherwise, leave them as is. In the first blank, fill in the number of years of the mortgage. In the second blank, fill in the number of years during which the interest rate is fixed. For example, if your loan is for 25 years with the first 4 years fixed, enter "25" in the first blank and "4" in the second.
Years total:

Years fixed:

Enter the interest rate for the years with fixed interest rate. This is usually the interest rate quoted to you in any type of mortgage.
Fixed rate:

If you select an adjustable-rate mortgage above, please enter the variable interest rates. For example, suppose you choose 5/1 ARM. If you estimate that the interest rate for the 6th year is 8%, for the 7th year, 6.5%, and 7% thereafter, then you would enter "8;6.5;7".
Variable rates:

Enter the total minimum monthly payment that you will pay. This is the sum of the calculated monthly payment and additional principle. Leave this field zero if you don't plan to payoff additional principle each month.
Monthly payment:

Enter your annual federal tax deductible expense for the home. This includes local property tax and cost of repairs. This does not include your new lawn and sprinklers. This might include your home insurance; please check with your accountant.
Tax deductible expense:

How much does the above expense increase every year? If you estimate this annual increase to be 5%, enter "5" below. If your estimates are different for each year, you may enter a value for each year, separated by semicolons.
Annual increase:

Enter your annual non-tax deductible expense for the home. This includes your new lawn, perhaps extra gasoline due to longer commute, etc.
Non-tax deductible expense:

How much does the above expense increase every year? If you estimate this annual increase to be 5%, enter "5" below. If your estimates are different for each year, you may enter a value for each year, separated by semicolons.
Annual increase:

If you are not buying a home, how much rent will you have to pay per month?
Rent you pay:

And how much would the above rent increase every year? If you believe it will be 3%, enter "3". If you think the rent will increase by 3% the first year, then 5% the next year, then drop by 25% the year after, and then level off, you would enter "3;5;-25;0".
Rent increase:

If you plan to rent out parts of your home, how much rent will you collect per month?
Rent you collect:

And how much would the above rent increase every year? If you believe it will be 3%, enter "3". If you do not plan to raise the rent, enter "0". If your estimates are different for each year, you may enter a value for each year, separated by semicolons.
Rent increase:

What is your federal tax bracket? If you are single and can afford a home, you are probably paying 28%. So you would enter "28". If you are not sure, you might want to ask your accountant.
Tax rate:

What is your annual return on investment? If you pick great stocks and average 12% return every year, enter "12". If you are conservative and keep all your investments in the bank, you might expect 2% interest this year, 3% next and 5% for the rest of your life. In that case, enter "2;3;5".
Your ROI:

usage