Rent vs Sell Calculator
Compare immediate sale proceeds with a keep-and-rent path including mortgage amortization, vacancy, expenses, appreciation and taxes.
Rent Vs Sell Calculator inputs
Change any assumption and this calculator recomputes its own complete report. Invalid relationships are stopped before a result is shown.
Rent Vs Sell Calculator results
How the rent vs sell calculator works
The rent vs sell calculator is built around this task’s actual formulas, choices and edge cases. Review the assumptions and interpretation before acting on the result.
Compare two wealth paths
The rent vs sell calculator starts both strategies on the same date. Selling now creates cash after mortgage payoff, selling costs and modeled tax, then grows that cash at the entered investment return. Keeping the property creates monthly rental cash flow, mortgage principal reduction and a later sale. Both outcomes are discounted back to present value so dollars received at different dates are not treated as equivalent.
Rent and vacancy
Scheduled rent is reduced by vacancy before management and maintenance percentages. Property tax, insurance and HOA cost are entered annually and grow with expenses. The rent vs sell calculator tracks owner contributions when cash flow is negative. Utilities, leasing commissions, repairs and capital replacements can be reflected by adjusting assumptions. A single average percentage cannot predict the timing of a roof, HVAC or tenant turnover.
Mortgage balance
Enter current principal, rate and remaining years. If monthly principal-and-interest payment is zero, the calculator derives a level payment. A known payment can be supplied for a modified or unusual loan. The future payoff is amortized monthly. Escrow is not principal and interest, so taxes and insurance remain separate. Adjustable rates, interest-only periods and recasts require additional scenario adjustments.
Value and future sale
The keep scenario grows property value at the selected appreciation rate, then subtracts future selling costs, tax and mortgage payoff. Appreciation can be negative. Short horizons are heavily affected by transaction cost; long horizons are sensitive to rent, repairs and value growth. The rent vs sell calculator should be run with conservative, central and optimistic cases instead of treating one forecast as certain.
Tax assumptions
Home-sale exclusion eligibility depends on ownership, use and other rules. Rental conversion may affect timing, depreciation and recapture. The exclusion, basis, gain rate, depreciation and recapture rate are editable for this reason. The rent vs sell calculator uses a simplified scenario and cannot prepare a tax return. Property-specific tax advice is important after rental use, major improvements or a previous exchange.
Break-even rent and nonfinancial factors
A numerical search estimates the starting rent that makes the modeled keep outcome equal to selling now. This is useful for screening a lease opportunity, but only as reliable as the inputs. Liquidity, concentration, tenant management, legal duties, insurance and personal plans also matter. The rent vs sell calculator is a financial comparison tool, not a recommendation to become a landlord or sell a particular home.
Rent Vs Sell Calculator questions
Does it compare present value?
Yes. Both strategies are discounted to the starting date.
Can vacancy and management be included?
Yes. They are separate editable inputs.
Does it amortize the mortgage?
Yes. It calculates the payoff through the selected horizon.
Is the tax estimate final?
No. Eligibility and rental-property tax treatment are property-specific.