Price-to-Rent Ratio Calculator
Price-to-Rent Ratio Calculator
Component | Description |
---|---|
Home Price | The purchase price of the home. |
Annual Rent | The total annual rent paid for the property. |
Price-to-Rent Ratio | The ratio of the home price to the annual rent, used to compare the costs of buying versus renting. |
Formula | Price-to-Rent Ratio = Home Price / Annual Rent |
Purpose | Used to determine whether it is more cost-effective to buy or rent a property. |