See the real number — after mortgage interest deductions, property tax deductions, and equity building — not just the sticker price.
Estimates only. Always consult a qualified tax advisor before making financial decisions.
Gross Monthly = P&I + property tax + insurance + HOA + maintenance.
Cash out-of-pocket = Gross − tax savings.
True cost = Cash out − equity built. Equity isn't a "cost" — it's wealth you're building. The true cost is what homeownership actually takes from your net worth each month.
We only count the extra federal benefit from buying. If you'd take the $30k standard deduction (MFJ) without a home, we subtract that first — so you see savings you gain from homeownership, not savings you'd already have. If someone already itemizes due to high state taxes, we account for that baseline too.
Mortgage interest on the first $750,000 of your loan is federally deductible. Your state and local taxes (property + income) are deductible as SALT, capped at $40,000/year under current law. This cap significantly expands savings vs. the prior $10k limit.
In early years, most of your payment is "true cost." Over time, two things shift: tax savings shrink (less interest to deduct), while equity building grows dramatically. By year 20–30, the majority of your monthly payment is wealth building — not spending.
Budget 1–2% of home value per year for repairs and upkeep. Newer homes need ~1%; older or high-wear homes need ~2%. This is real cash — not a tax deduction — and is commonly underestimated. Select "None" if you prefer not to include it in the estimate.
This calculator does not account for home price appreciation. If your home gains value over time, your true economic cost could be significantly lower — or even negative. U.S. home prices have historically appreciated ~3–5% per year on average, though this varies widely by market and is never guaranteed.
Estimates only — not tax advice. Savings depend on your full tax picture: other itemized deductions, AMT exposure, income phaseouts, and state-specific rules not captured here. Standard deductions are 2025 figures. The SALT cap ($40,000) reflects the One Big Beautiful Bill (2025) and applies below certain income thresholds — verify with your tax advisor.
State savings are approximate. Always consult a qualified tax professional before making financial decisions.