About
Why we built TrueAddressCost
The problem with standard cost calculators
Most cost-of-living tools compare rent or mortgage payments and stop there. But the true financial cost of an address goes far beyond what you pay your landlord or lender. Where you live determines how many cars you need, how much you pay in property taxes, and how many hours of your life you spend commuting every year.
A $1,500/month apartment in a walkable, transit-rich neighborhood can cost significantly less overall than a $1,800/month house in the suburbs, once you account for an extra car ($12,000/year by AAA estimates), higher property taxes, and two hours of daily commuting valued at your hourly rate.
How the calculator works
TrueAddressCost combines four cost components into a single annual number for each address:
Annual housing
Your monthly housing cost (rent or mortgage) multiplied by 12. This is the only number most calculators show; we treat it as the starting point, not the whole picture.
Property tax
We look up the effective property tax rate for your city and state using the API Ninjas property tax database, then apply it to your annual housing cost.
Transportation
We look up the Transit Score for your address. A score above 70 means you likely need 0 cars; 40 to 70 means 1 car; below 40 means 2 cars. Each car is valued at $12,000/year, the figure from AAA's annual “Your Driving Costs” study.
Commute time value
We calculate driving and transit commute times from your home to your workplace with Google Directions, pick the faster mode, and value the round-trip time at your hourly rate over 250 working days per year.
Data sources
For the full breakdown of every formula and assumption, see the methodology page.
Limitations
All estimates are approximations for informational and comparison purposes only. Actual costs will vary based on your specific vehicle, insurance, driving habits, actual property tax assessment, and many other factors. This tool is not financial, tax, or real estate advice. See our full disclaimer.