Skip to main content
True Trade Path

Calculator · Free

True Cost of Home Ownership Calculator

See the full annual cost of owning a home — not just the mortgage payment.

Your home
$

Used to estimate taxes, insurance, and maintenance defaults.

Annual costs

Adjust each line to match your actual bills or budget.

$/yr

P&I only — not escrow.

$/yr

National effective rate averages about 1.0% of assessed value.

$/yr

Varies by state, age, and coverage limits.

$/yr

Budget 1–2% of home value annually for upkeep.

$/yr

U.S. average household utility spend.

$/yr

Zero for most single-family homes.

$/yr

Applies when down payment is below 20%.

$/yr

Mowing, seasonal cleanup, irrigation.

True annual cost

$17,400

$1,450 per month — $17,400 beyond mortgage P&I.
Monthly all-in cost
$1,450
Mortgage P&I
$0
Everything else
$17,400
Non-mortgage share
100.0%
Annual cost breakdown
ExpenseAnnualMonthlyShare
Mortgage principal and interest$0$00.0%
Property taxes$4,000$33323.0%
Homeowners insurance$1,400$1178.0%
Maintenance and repairs$6,000$50034.5%
Utilities (electric, gas, water, sewer, trash)$4,800$40027.6%
HOA or condo fees$0$00.0%
PMI or FHA mortgage insurance$0$00.0%
Lawn care and landscaping$1,200$1006.9%
Total$17,400$1,450100%

Budget for maintenance before emergencies

Deferred maintenance does not disappear — it becomes an emergency repair at 2 to 3× the planned cost. The 1.5% maintenance default on a $400,000 home is $6,000 per year.

What this assumes

  • Property tax uses a 1.0% effective rate — adjust for your county.
  • Maintenance budget uses 1.5% of home value annually.
  • Utilities default to U.S. household average; override with your bills.

Understanding the result

The mortgage is only part of the payment

Property taxes, insurance, maintenance, utilities, and HOA fees add 30 to 50% on top of principal and interest for many homeowners. A $2,500 mortgage payment often means $3,500 to $4,000 in true monthly ownership cost.

Maintenance is not optional

Budget 1 to 2% of home value annually for upkeep — HVAC service, roof repairs, appliance replacement, and deferred maintenance. Skipping it does not save money; it moves the cost to an emergency repair.

Common questions

How much should I budget for home maintenance per year?
Plan for 1 to 2% of home value annually. On a $400,000 home, that is $4,000 to $8,000 per year for HVAC service, roof upkeep, appliance replacement, and minor repairs.
What is the 1% rule for home maintenance?
The 1% rule says budget 1% of purchase price per year for maintenance. On a $350,000 home, that is $3,500. Older homes and homes with pools or large lots need closer to 2%.

You may also need

The next decision usually follows directly from this one.

Where to go next