1. What is Rent-To-Own?

Rent-to-own is a payment plan where you pay for an item through installments (EMI) with an initial down payment. At the end of the payment period, you own the item. The total cost includes both the down payment and all monthly payments.

2. How Does the Calculator Work?

The calculator uses the rent-to-own formula:

Where:

• Down Payment — Initial payment amount ($)
• EMI — Equated Monthly Installment ($/month)
• n — Number of months in the payment plan

Explanation: The formula calculates the complete cost of ownership by adding the initial down payment to the sum of all monthly payments.

3. Importance of Calculating Total Cost

Details: Understanding the total cost helps consumers compare rent-to-own offers with other financing options and make informed purchasing decisions.

4. Using the Calculator

Tips: Enter the down payment amount in dollars, the monthly payment amount in dollars, and the total number of months in the payment plan. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How does rent-to-own compare to buying outright?
A: Rent-to-own typically costs more in total than buying outright, but provides payment flexibility and immediate use of the item.

Q2: What's a typical down payment percentage?
A: Down payments usually range from 10-20% of the item's value, but can vary by retailer and agreement terms.

Q3: Are there additional fees in rent-to-own agreements?
A: Some agreements may include maintenance fees, late fees, or other charges not reflected in this basic calculation.

Q4: Can I return the item during the payment period?
A: Return policies vary by agreement - some allow returns with partial refunds, others may charge penalties.

Q5: Is rent-to-own a good financial decision?
A: It depends on individual circumstances. While convenient, the total cost is often higher than other financing methods.