Cost of Homeownership Calculator

Calculate Cost of Homeownership











Formula

To calculate the Cost of Homeownership (\(COH\)):

\[ COH = MP \times n + M + I + T + R \]

Where:

What is the Cost of Homeownership?

The cost of homeownership refers to the various expenses associated with owning a home beyond the initial purchase price. These costs include mortgage payments, property taxes, home insurance, maintenance and repair costs, and potentially homeowners association fees. These costs can vary greatly depending on the location, size, and condition of the home. The cost of homeownership also includes the opportunity cost of the money invested in the home, which could have been invested elsewhere for potentially higher returns.

Example Calculation 1

Let's assume the following values:

Using the formula:

\[ COH = 1500 \times 360 + 20000 + 10000 + 15000 + 5000 = 540000 + 20000 + 10000 + 15000 + 5000 = 590000 \]

The Total Cost of Homeownership is $590,000.

Example Calculation 2

Let's assume the following values:

Using the formula:

\[ COH = 2000 \times 240 + 25000 + 12000 + 18000 + 8000 = 480000 + 25000 + 12000 + 18000 + 8000 = 543000 \]

The Total Cost of Homeownership is $543,000.