Lease-to-Own Calculator
Calculate the true cost of a rent-to-own agreement including total payments, equity credits, remaining balance, and effective interest rate.
Inputs
%
Results
Total Credits Earned
$21,200
Remaining Balance at Purchase
$228,800
Monthly Rent Credit$450
Total Rent Paid$64,800
Total Cost (Lease-to-Own)$298,600
Premium over Outright Purchase$48,600
Effective Annual Rate6.48%
Equity at Exercise8.48%
Total Premium Over Market$14,400
How to Use This Calculator
- Enter the property purchase price ($) and the agreed monthly rent ($).
- Set the rent credit percentage (the portion of rent that applies toward purchase).
- Enter the lease term in months and the option fee ($) paid upfront.
- Review total rent paid, total credits accumulated, and remaining purchase balance at end of term.
- Compare remaining balance to current market value to assess whether the option is favorable to exercise.
Ad Placeholder
Ad Placeholder