About True Cost
The true cost of buying a home — no surprises, just numbers.
Everyone says homeownership builds wealth. But the math is more complicated than a mortgage payment. True Cost models the full picture — state-specific tax benefits, property tax growth, opportunity costs, and the buy vs rent tradeoff over time. No opinions. Just data you can trust.
Why We Built This
We built the True Cost calculator because we found the most popular free mortgage calculators to be insufficient. Most mortgage calculators show you the principal and interest payment and stop there. They don't show your specific area's property taxes rates, realistic insurance costs, the actual tax savings of buying customized for your specific financial situation, or how buying compares to renting over time. You get a monthly number and you're expected to figure out the rest on your own.
The goal was to build the calculator that gives prospective buyers the full picture before they sign — not after. The New York Times Buy vs Rent calculator is often described as the best calculator available. Our goal was to build a better one. One that models the real financial tradeoffs: what you build in equity versus what you give up in investment returns, the actual federal and state tax savings modeled over time, and how the math shifts depending on where you live and what you earn.
Remove the surprises of homeownership before they remove your savings.
What True Cost Models
Mortgage & Payment
- ›Monthly costs broken down into principal, interest, property tax, insurance, PMI, and HOA
- ›Full 30-year amortization schedule
- ›Customized property tax and insurance cost estimates for where you live
- ›Mortgage points analysis with break-even calculation
Tax Analysis
- ›Complete federal and state tax engine
- ›Federal and state mortgage interest deduction
- ›SALT deduction — state and local taxes
- ›Standard vs itemized deduction comparison
- ›Tax Brackets for all 50 states for single and married filers
- ›Mortgage points tax deductibility in year one
Buy vs Rent
- ›True monthly cost comparison accounting for equity buildup and investment opportunity cost
- ›Break-even year calculation
- ›Models 30 years of annual housing cost for buying and renting
- ›Models the impact of up to 30 years of homeownership tax savings on net worth
- ›Calculating the breakeven home price appreciation rate, rent appreciation rate, and investment returns
- ›Year by year net worth impact for up to a 30 year time horizon
Advanced Tools
- ›Advanced refinancing analysis with options for a cash out refi and net worth impacts
- ›Extra payment modeling with IRR calculation
Our Data Sources
True Cost uses primary government and academic data sources for all defaults and assumptions. We don't make up numbers.
Key sources include the U.S. Census Bureau (property tax, income, and rent data), Federal Reserve FRED (mortgage rate benchmarks), HUD Fair Market Rents (rental benchmarks by county), Tax Foundation (state tax rates and brackets), Zillow Research and FHFA (home price appreciation data).
See our full data sources →Accuracy & Limitations
True Cost is designed to give you accurate estimates, not exact figures. Property tax rates vary by assessment year and local exemptions. Insurance costs depend on your home's specific characteristics. Tax benefits depend on your full financial picture.
Use this tool to understand the magnitude of costs and make informed comparisons — then verify the specifics with a lender, tax advisor, and insurance agent before making a decision.
This tool is not financial advice. Full disclaimer →
Feedback & Contact
Found an error? Have a suggestion? We want to know. True Cost is an ongoing project and accuracy matters.
If you're a real estate agent or website owner interested in embedding the calculator on your site, see our Partners page →