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Real Estate

House Hack Calculator

See how rental income from other units reduces your effective housing cost when living in the property.

Decision support

Interpretation

House hacking reduces your housing cost from $3,150/month to $1,350/month — a 57.14% reduction through $1,800/month in rental income.

Recommendation

Rental income provides a solid offset but you still carry meaningful housing cost. Weigh privacy and landlord responsibilities against the savings.

Assumptions

Assumes stable rental income from other units, owner-occupancy, and shared building expenses. Excludes vacancy, property management, and income taxes on rental income.

Detailed results

Effective housing cost ($/month)
1,350
Annual savings from rental offset ($)
21,600
Housing cost reduction (%)
57.14

House hacking means living in one unit of a property while renting out others to offset your housing costs. This calculator shows your effective monthly housing cost after rental income and how much you save compared to paying full freight.

How to use this calculator

  1. Enter your monthly mortgage payment.
  2. Enter rental income from other units on the property.
  3. Add monthly property tax, insurance, and maintenance.
  4. Review effective housing cost and savings percentage.

Formula

Total housing cost = Mortgage + Tax + Insurance + Maintenance. Effective housing cost = Total housing cost − Rental income. Savings percent = Rental income ÷ Total housing cost × 100.

Example

With a $2,400 mortgage, $750 in other costs, and $1,800 in rental income, effective housing cost drops to $1,350/month — a 57% reduction versus paying all costs yourself.

Frequently asked questions

What properties work for house hacking?
Duplexes, triplexes, and homes with ADUs or rentable rooms are common. Check local zoning and owner-occupancy loan requirements.
Does this include vacancy?
No. Use conservative rental income or reduce income by 5–10% to account for vacant periods.

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