Owning a second home can be a rewarding investment, but it also comes with a variety of recurring expenses. This calculator helps you estimate the net annual cost of your second property by taking into account all major cost components and any potential rental income.
Key Inputs Explained
Purchase Price ($): The total amount you paid (or plan to pay) for the property.
Property Tax Rate (%): The annual tax expressed as a percentage of the purchase price. Multiply the purchase price by this rate to get the yearly tax amount.
Annual Home Insurance ($): The yearly premium you pay to insure the property against damage or loss.
Annual Maintenance Cost ($): Estimated yearly spending on upkeep, repairs, landscaping, and other routine maintenance.
Annual Utilities Cost ($): Average yearly cost for electricity, water, gas, internet, and other utilities.
Monthly Mortgage Payment ($): Your regular mortgage payment. The calculator multiplies this by 12 to obtain the annual mortgage expense.
Expected Annual Rental Income ($): If you plan to rent out the second home, enter the projected gross rental earnings for the year.
If the result is a negative number, it indicates that the rental income exceeds the total expenses, effectively giving you a net profit from the property.
Practical Use Cases
Assessing whether a second home is financially viable before purchase.
Comparing the cost of owning versus renting a vacation property.
Estimating the break‑even point when planning to rent out the property.
Budgeting for annual expenses to ensure you have sufficient cash flow.
Tips for Accurate Results
Use the most recent property tax assessment for the tax rate.
Include all recurring insurance premiums, not just the primary policy.
Factor in seasonal maintenance tasks that may increase costs in certain years.
Base rental income on realistic market rates and occupancy expectations.
By regularly updating the inputs as your situation changes, you can keep a clear picture of the financial impact of your second home and make informed decisions.
function calculateCost(){
var purchase = parseFloat(document.getElementById('purchasePrice').value);
var taxRate = parseFloat(document.getElementById('taxRate').value);
var insurance = parseFloat(document.getElementById('insuranceCost').value);
var maintenance = parseFloat(document.getElementById('maintenanceCost').value);
var utilities = parseFloat(document.getElementById('utilitiesCost').value);
var mortgage = parseFloat(document.getElementById('monthlyMortgage').value);
var rental = parseFloat(document.getElementById('rentalIncome').value);
if(isNaN(purchase) || isNaN(taxRate) || isNaN(insurance) || isNaN(maintenance) || isNaN(utilities) || isNaN(mortgage) || isNaN(rental)){
document.getElementById('result').innerHTML = 'Please enter valid numbers for all fields.';
document.getElementById('result').style.color = '#dc3545';
document.getElementById('result').style.borderColor = '#dc3545';
document.getElementById('result').style.background = '#f8d7da';
return;
}
var annualTax = purchase * (taxRate / 100);
var annualMortgage = mortgage * 12;
var netCost = (annualTax + insurance + maintenance + utilities + annualMortgage) – rental;
var formatted = netCost.toLocaleString(undefined, {minimumFractionDigits:2, maximumFractionDigits:2});
var display = (netCost >= 0) ? 'Net Annual Cost: $' + formatted : 'Net Annual Profit: $' + Math.abs(formatted);
document.getElementById('result').innerHTML = display;
document.getElementById('result').style.color = (netCost >= 0) ? '#28a745' : '#28a745';
document.getElementById('result').style.borderColor = (netCost >= 0) ? '#28a745' : '#28a745';
document.getElementById('result').style.background = (netCost >= 0) ? '#e9f7ef' : '#e9f7ef';
}