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Rent or Sell Calculator: Keep the Rental or Sell Now?

Selling now gives you cash today; keeping the property gives you rent, loan paydown and appreciation. This calculator compares the two paths over the same number of years, using the return you could get elsewhere on the sale proceeds.

How it's calculated

Sell now = value × (1 − selling costs) − mortgage balance − taxes, then grown at your alternative return for the same number of years
Keep renting = future value (appreciation compounded yearly) × (1 − selling costs) − the mortgage balance remaining then − taxes + all monthly cash flow in between
Cash flow is not reinvested, and taxes on the sale are your estimate; both keep the comparison simple.

Worked example

The calculator above starts with these numbers: current market value $350,000; mortgage balance $200,000; mortgage interest rate 4%; years left on the mortgage 25 years; selling costs 7%; estimated taxes due on sale $0; monthly rent $2,400; vacancy 5%; monthly costs besides the mortgage $700; yearly appreciation 3%; return on the cash if you sell 5%; years to compare 5 years.

Net cash if you sell now: $125,500
…invested at your alternative return: $160,173
Monthly cash flow if you keep renting: $524
Keep renting, then sell: net proceeds + cash flow: $234,594
Advantage of keeping (negative = sell now): $74,421

Frequently asked questions

Is it better to rent out or sell my house?

It depends on your cash flow, how fast the area appreciates, and what else you would do with the money. If the advantage of keeping is small, the extra work and risk of being a landlord may decide it.

Does this include capital gains tax?

Only as a number you enter. Tax treatment depends on your situation (for example, how long you lived in the home), so get the estimate from a tax professional.

What alternative return should I use?

Use what you would realistically earn on the cash: paying down other debt, a savings account, or a diversified investment. A higher number favors selling.

Related guides

More free calculators: Cash-on-Cash Return · Cap Rate · BRRRR

Estimates only, for comparing deals. This is not investment, tax, or lending advice. Verify numbers with your lender and a licensed professional before you buy or sell.