How to use the True Cost of Homeownership Calculator

See what a home really costs each month and each year, check affordability, and compare renting with buying. Here's every step.

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Version 1.0 · 7 tabs · Excel and Google Sheets · Free Lifetime Updates

At a Glance
StepHow long
1Before you start1 min 2Enter the home and loan10 min 3Read the DashboardSee step 4Check affordabilitySee step 5Compare renting and buyingSee step
Messages explainedSee them →

Before you start

The one rule: yellow cells with blue text are yours to fill in. Gray cells calculate on their own and are locked, so you can't erase a formula by accident.
  1. Your download is a zip with two files. Double-click it to open it. Start with the one marked with examples to see how everything works, then use the blank one for your household.
  2. Open the file in Microsoft Excel. Using Google Sheets? Upload it to Google Drive, then open it with Google Sheets.
  3. Start on the Start Here tab. It has the same steps, right inside the file.
  4. The sample data is there so you can see how everything works. Type over it with your own when you're ready.

Here's how to go from a home price to the real monthly cost, an affordability check and a rent vs buy answer.

1Enter the home and loan (about 10 minutes)

  1. Open Start Here first. Yellow cells with blue text are yours to fill in. Italic yellow cells are optional. Gray cells calculate on their own.
  2. Open My Home. Enter the price, down payment, rate, term, property tax, insurance, HOA and utilities. Percent cells accept 6.5 or 6.5%.
  3. Check the We use column. It shows the exact number the math uses.

2Read the Dashboard

  1. The Dashboard shows the full monthly and first-year cost, PMI and when it drops off, cash needed at closing, and first-year interest vs principal.

3Check affordability

  1. Open Affordability. Enter your gross monthly income and other monthly debt payments.
  2. You'll see your ratios against common lender limits and a status of Comfortable, Stretch or Over, plus an estimated maximum home price.

4Compare renting and buying

  1. Open Rent vs Buy. Enter your rent, how fast it rises, and how many years you expect to stay.
  2. Read the breakeven year and the plain-words summary.

What the messages mean

The tool watches your numbers and tells you in plain words when something needs a look. Here's every message you might see.

Stretch
What it means: Your ratios are above the common lender limits but under the stretch limit.
What to do: Look at a lower price, a bigger down payment, or less other debt.
Over
What it means: Your ratios are above the stretch limit.
What to do: This price is likely more than the budget allows.
Check column notes
What it means: An input is missing or looks off.
What to do: Read the note and fix that row on My Home.

Using Google Sheets or your phone

  • To use Google Sheets, upload the file to Google Drive, then right-click it and choose Open with, then Google Sheets.
  • Dropdowns, colors, and every calculation work the same in Google Sheets.
  • On a phone, the Google Sheets and Excel apps work for quick changes. For setup and printing, a computer is easier.
  • Want to start fresh? Type over the yellow example cells. Don't delete rows, since other tabs may be reading them.

Ready when you are

Like what you see? Get the true cost of owning calculator for $14, with every future update free. Need more than one tool? Save with the toolkit.

Common questions

Is the maximum price a promise?

No. It's an estimate. Lenders also look at credit, savings and other things.

What does PMI mean?

Mortgage insurance. The Dashboard shows the estimated month it drops off.

Quick reference from the Start Here tab

Welcome

The mortgage payment is only part of what a home costs. This calculator adds up everything: the loan, mortgage insurance, property tax, home insurance, HOA, utilities and upkeep. Then it checks the payment against your income and compares buying with renting, year by year.

Where To Start

1

Open 'My Home'. Type the price, down payment, interest rate and loan term, then your tax, insurance, HOA, utilities and maintenance.

2

Open 'Dashboard' to see the real monthly and yearly cost, the first-year interest vs principal split and the cash you need at closing.

3

Open 'Affordability'. Add your gross monthly income and other debt payments to see your ratios, a status and an estimated maximum price.

4

Open 'Rent vs Buy'. Add your rent and how long you plan to stay to see which costs less and the breakeven year.

5

'Amortization' shows every monthly payment. You don't need to fill anything in there.

Which Cells To Edit

Yellow cells with blue text are yours to fill in. Italic yellow cells marked (optional) can stay blank. Gray cells are automatic and locked.

Percent cells accept 6.5 or 6.5%. Both mean 6.5 percent. The 'We use' column shows the exact number the math uses, and the 'Check' column tells you if something looks wrong.

Need to change a formula? In Excel go to Review, then Unprotect Sheet. In Google Sheets use Data, then Protect sheets and ranges. No password needed.

What The Results Mean

Total monthly cost of ownership: everything it costs to own and run the home each month, not just the loan payment.

PITI: principal, interest, taxes and insurance. Lenders add PMI and HOA to get the housing payment they compare with your income.

Front-end ratio = housing payment / gross income. Back-end ratio = housing payment + other debts / gross income. 28% and 36% are common lender limits, not a guarantee.

Status: Comfortable (within both lender limits), Stretch (above them but under your stretch limit), Over (above your stretch limit).

Breakeven year: the first year where buying and then selling costs less than renting would have, including the return your down payment could have earned.

Every result is Estimated. Your lender, tax office and insurer give the real numbers.

How To Clear The Examples And Reuse It

The example numbers show how it works. Type right over the yellow cells, or open the Blank file that came with this one (same tool, no examples).

Comparing two homes? Right-click a tab and choose Duplicate, or save a copy of the file for each home.

Good To Know

Principal vs interest: principal is the money you borrowed. Paying it down builds your equity. Interest is what the lender charges you to borrow it, and it's gone once paid.

APR vs simple interest: the rate here is the yearly rate (APR) on the loan. Each month we charge APR / 12 on what you still owe, so interest shrinks as the balance shrinks. Simple interest would charge the same amount on the original loan every year.

Home value vs equity: home value is what the home would sell for. Equity is the part you own: home value minus what you still owe.

Monthly vs annual: tax and insurance are usually quoted per year. We divide by 12 for monthly numbers. The Dashboard shows both.

PMI: private mortgage insurance. Lenders usually charge it when you put down less than 20%. We stop it once the loan reaches 78% of the original price, and show the month.

Share box: the "Share with other EasyWorkTools Home tools" box on the Dashboard lists the numbers this file gives to and gets from the other Home tools. Copy them by hand. The labels match exactly, so it's clear where each one goes.

Getting Updates

Every update is free. When a new version is ready we email you, and you can download it any time.

Moving to a new version: copy the yellow cells from each sheet into the same sheets of the new file.

Using Google Sheets? Upload this file to Google Drive and open it with Google Sheets (or File, then Import, then Upload). The math works the same.

Your License

This file is licensed to one household. Please don't share, resell or post it online.

© 2026 EasyWorkTools. All rights reserved. easyworktools.com

Every tab

This file has 7 tabs, in this order:

  1. Start Here
  2. Dashboard
  3. My Home
  4. Affordability
  5. Rent vs Buy
  6. Amortization
  7. Lists
Still stuck on something? Ask us. We answer within one business day, and we'll add the answer here for everyone.