Rent-to-Own Calculator
A rent-to-own calculator models the financial comparison between renting and buying property, accounting for rent escalation, opportunity cost, tax treatment, and appreciation assumptions.
| Calculator Inputs | Variables |
| Property price | Purchase cost |
| Down payment | Initial equity required |
| Mortgage rate and term | Financing assumptions |
| Monthly rent | Alternative rental cost |
| Rent escalation | Annual increase percentage |
| Property appreciation | Value growth rate assumption |
| Holding period | Years to analyze (typically 5 to 10) |
| Investment return | Opportunity cost on down payment |
| Output Analysis | Comparison |
| Total cost of ownership | Mortgage, taxes, fees, maintenance |
| Total cost of renting | Cumulative rent paid over period |
| Equity buildup | Mortgage principal paid plus appreciation |
| Net position | Ownership equity minus rental opportunity cost |
| Breakeven timeline | Years until ownership advantageous |
| Dubai context | No income tax or property tax simplifies calculation |
Related Terms
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