Math for Work & Everyday Life (MEL4E) · Personal Finance

Renting vs. owning — monthly cost

Compare the total monthly cost of owning (mortgage + property tax + maintenance) to renting. Unlimited questions, five difficulty levels, and a full worked solution every time — free.

Practice this skill Curriculum: MEL4E-RO1

Try one

A family is deciding between renting an apartment for $1280.00/month, or buying a home with a mortgage payment of $1000.00/month, property tax of $3000.00/year, and monthly maintenance costs of $80.00. How much cheaper per month is the less expensive option?

Answer: $50.00

See one solved, step by step

A family is deciding between renting an apartment for $1794.00/month, or buying a home with a mortgage payment of $1200.00/month, property tax of $6000.00/year, and monthly maintenance costs of $150.00. How much cheaper per month is the less expensive option?

📘 Worked solution

1Monthly property tax: $6000.00 / 12 = $500.00Property tax is billed yearly, so divide by 12 to get the monthly share.

2Owning cost: $1200.00 + $500.00 + $150.00 = $1850.00Add the mortgage, monthly property tax, and maintenance for the total monthly cost of owning.

3Compare to rent: $1794.00Renting comes in lower than the other option.

4$1850.00 - $1794.00 = $56.00Renting is cheaper, by $56.00 a month.

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