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
$21,200.00
Remaining Balance at Purchase
$228,800.00
Monthly Rent Credit$450.00
Total Rent Paid$64,800.00
Total Cost (Lease-to-Own)$298,600.00
Premium over Outright Purchase$48,600.00
Effective Annual Rate6.48%
Equity at Exercise8.48%
Total Premium Over Market$14,400.00
How to Use This Calculator
- Enter the property purchase price ($) 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.
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