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Calculator Documentation

House Hacking Calculator

Live in one unit, rent the rest: see your true monthly housing cost

Schema version 1.0.0 · Category: investment

Inputs

Property & Loan

The multi-unit you would buy

FieldTypeDefaultNotes
Purchase Pricecurrency$500,000Owner-occupied 2-4 units qualify for FHA/conventional low-down loans
Number of Unitsselect2You live in one, rent the others
Down Paymentpercentage3.50%FHA allows 3.5% down on owner-occupied 2-4 units
Interest Ratepercentage6.50%Owner-occupied rate (better than investor rates)
Loan Termselect30Length of the mortgage

Rental Income

What the other units rent for

FieldTypeDefaultNotes
Monthly Rent per Unitcurrency$1,600Average market rent for each rented unit
Vacancy Allowancepercentage5.00%Budget for empty months
Rent You Pay Todaycurrency$2,200What you currently pay to rent (for the comparison)

Ownership Costs

Taxes, insurance, upkeep

FieldTypeDefaultNotes
Annual Property Taxcurrency$6,000Annual property tax
Annual Insurancecurrency$2,400Multi-unit policies cost more than single-family
Maintenancepercentage5.00%Percent of rental income reserved for repairs

Calculations

Every figure this calculator produces, in evaluation order. Formulas reference input ids, parameters, and earlier calculations.

downPaymentDown payment
purchasePrice * downPaymentPercent
loanAmountLoan amount
purchasePrice - downPayment
monthlyRateMonthly rate
interestRate / 12
termMonthsTerm months
loanTerm * 12
monthlyPIMonthly P&I
(loanAmount * monthlyRate * pow(1 + monthlyRate, termMonths)) / (pow(1 + monthlyRate, termMonths) - 1)
monthlyMIMortgage insurance (FHA MIP under 10% down, PMI under 20%)
if(downPaymentPercent < 0.10, loanAmount * 0.0055 / 12, if(downPaymentPercent < 0.20, loanAmount * 0.0050 / 12, 0))
totalPITIFull monthly ownership payment
monthlyPI + monthlyMI + annualPropertyTax / 12 + annualInsurance / 12
rentedUnitsUnits producing rent (you live in one)
units - 1
grossRentalIncomeGross monthly rental income
rentPerUnit * rentedUnits
effectiveRentalIncomeRental income after vacancy and maintenance reserves
grossRentalIncome * (1 - vacancyPercent) - grossRentalIncome * maintenancePercent
effectiveHousingCostWhat YOU pay monthly after the tenants pay their share
totalPITI - effectiveRentalIncome
savingsVsRentingMonthly savings vs continuing to rent
marketRent - effectiveHousingCost
lenderIncomeCreditRental income lenders count toward qualification (75%)
grossRentalIncome * 0.75
costsMoreThanRentingFlag: hacking costs more than current rent (0 = saves money)
if(savingsVsRenting < 0, 1, 0)

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