Rent-to-Own vs Buy Calculator
Compare rent-to-own costs against traditional buying to see which option saves you more money.
Cost Comparison
Rent-to-own (lease-option) agreements let you rent a property with the option to buy it later. Part of your rent may be credited toward the purchase price.
Total Rent-to-Own Cost = (Monthly Rent × Months) + (Purchase Price - Rent Credits) + Option Fee
Rent Credits = Rent Premium × Months
Traditional Buy Cost = Purchase Price + Closing Costs + (Mortgage Interest over same period)
Typical rent-to-own terms:
- Option fee: 1%–5% of purchase price (usually non-refundable)
- Rent premium: $200–500/month above market rent
- Rent credit: 15%–30% of monthly rent applied to purchase
- Lease term: 1–3 years before purchase
Pros of rent-to-own:
- Lock in purchase price now
- Build credit toward down payment
- Test the neighborhood
Cons:
- Higher monthly payments than regular rent
- May lose option fee and credits if you don’t buy