See how much a tenant could cut your housing cost
House hacking means buying a home, living in part of it and renting out the rest. Enter the home and the rent you'd collect, and you'll see what living there would really cost you each month, plus the equity you'd build over 10 years.
- Free, no sign-up
- U.S. and Canada
- With vs. without a renter
How it works
Four steps to your real monthly cost
The calculator starts with an example home so you can see how it works. Change any number to match the place you're looking at.
- 1
Enter the home and loan
Price, down payment, mortgage rate, closing costs and any renovation. Mortgage insurance is estimated for you under 20% down. - 2
Add the rent you'd collect
What your tenant, roommate or basement suite would pay each month, and a vacancy rate for empty stretches. - 3
List the running costs
Taxes, insurance, utilities and money set aside for repairs. These are the costs that make or break a house hack. - 4
Read your real cost
Results update as you type. Start with your monthly housing cost, then compare it to life without a renter.
House hacking calculator
Pre-filled with an example. Change any number.
What you'd pay for the home.
Share of the price paid in cash. Owner-occupied loans can go as low as 3 to 5% down.
Your mortgage rate. Ask a lender for a current quote.
How many years the loan is paid over. 25 or 30 is common.
Lender, legal and title fees paid at purchase.
Cash to get the rental space ready, like a basement suite.
What your tenant or roommate pays each month in total.
Share of the year the space sits empty. 5 to 10% is a careful guess.
Yearly property tax for the whole home.
Home insurance per month.
Utilities you pay that the tenant doesn't.
Set aside for small repairs, as a % of rent.
Leave at 0 if you'll manage the tenant yourself.
Condo or association fees, if any.
A yearly fund for bigger fixes like a water heater.
How much you expect the home's value to rise each year.
How much you expect rent to rise each year.
How much you expect costs to rise each year.
Agent and closing costs if you sell, as a % of the price.
Monthly Cash Flow
-$1,661.44
Your monthly housing cost
$1,661.44
Mortgage Payment
$2,275.44
Effective Rent
$1,710.00
| Metric | 5-Year | 10-Year |
|---|---|---|
| Property Value | $463,710 | $537,567 |
| Equity Built | $126,710 | $232,372 |
| Loan Balance | $337,000 | $305,194 |
| Total Cash Flow | -$97,801 | -$186,542 |
| ROI (if sold) | -97.7% | -71.7% |
Without Renter (monthly)
$3,371.44
With Renter (monthly)
$1,661.44
Monthly Savings
$1,710.00
Annual Savings
$20,520
| Expense | Amount |
|---|---|
| Mortgage (P&I) | $2,275.44 |
| Mortgage Insurance | $156.00 |
| Property Taxes | $400.00 |
| Insurance | $150.00 |
| Utilities | $200.00 |
| Maintenance Reserve | $90.00 |
| Repairs Reserve | $100.00 |
| Total Expenses | $3,371.44 |
| Rental Income (effective) | -$1,710.00 |
| Net Cash Flow | -$1,661.44 |
Your results, explained
How to read your results
The goal of a house hack is simple: pay less to live than you would otherwise. Here's how to tell if you are.
- Your monthly housing cost
- What you'd still pay each month after the rent comes in. Compare it to your current rent or mortgage. If it's lower, the house hack saves you money. If it shows $0, the tenant covers everything.
- Monthly cash flow
- Rent minus every cost. Negative is normal for a house hack, because you live there too. It just means you cover the gap, and that gap is your housing cost.
- With vs. without a renter
- What the same home would cost you alone versus with a tenant. The difference is how much the renter saves you each month and each year.
- Equity and ROI
- Equity is the home's value minus what you still owe. ROI (if sold) adds up sale proceeds after selling costs and all cash flow, compared to the cash you put in.
This is an educational estimate, not financial, tax or legal advice. Mortgage insurance is a rough estimate, and rules for renting part of your home vary by city. Check with a lender and your local rules before you buy.
House hacking, explained
House hacking is a real estate strategy where you purchase a property, live in part of it, and rent out the remaining portion to offset your housing costs. This can involve renting out rooms in a single-family home, purchasing a duplex/triplex/fourplex and living in one unit, or renting out a basement suite or accessory dwelling unit.
The core benefit is reducing or eliminating your personal housing expense while simultaneously building equity in a property. In the best scenarios, the rental income exceeds all expenses, creating positive monthly cash flow.
- Monthly Cash Flow: Rental income minus all expenses including mortgage, taxes, insurance, and reserves. Positive means the property pays you; negative means you cover the difference.
- Monthly Housing Cost: What you actually pay out of pocket each month after accounting for rental income. This is the real cost of your living situation.
- Equity Built: The difference between the property value and the remaining mortgage balance. Grows through principal paydown and property appreciation.
- ROI: Return on investment calculated as net proceeds plus total cash flow minus initial investment, divided by initial investment.
When analyzing a potential house hack, focus on these key factors:
- Cash flow positive or close to it. The best deals cover all expenses with rental income.
- Conservative vacancy assumptions. Use 5-10% vacancy to account for turnover and gaps between tenants.
- Maintenance and repair reserves. Budget at least 5% of rent for ongoing maintenance and a separate annual amount for larger repairs.
- Realistic rent estimates. Research comparable rentals in the area. Do not rely on optimistic projections.
- Total cash required. Include down payment, closing costs, and any renovation budget in your initial investment calculation.
- Rent by the Room: Purchase a single-family home and rent out extra bedrooms. Often generates the highest per-unit income but requires sharing common spaces.
- Small Multi-Family (2-4 units): Live in one unit and rent the others. Qualifies for residential financing (FHA/conventional) with as little as 3-5% down for owner-occupied properties.
- ADU / Basement Suite: Build or convert an accessory dwelling unit on your property. Requires upfront investment but creates a separate, private rental space.
- Short-Term Rental: Rent out a portion of your property on platforms like Airbnb. Can generate higher income but requires more management and may face local regulations.