Rent vs. Sell Calculator

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Rent vs. Sell Calculator

Compare the financial outcomes of renting out your property versus selling it

1. Property Details

2. Rental Scenario

3. Sale Scenario

Projected Outcomes

Rental Scenario

Total Rental Income: $0
Total Expenses: $0
Net Operating Income: $0
Property Value Growth: $0
Total Rental Profit: $0

Sale Scenario

Sale Proceeds: $0
Capital Gains Tax: $0
Investment Growth: $0
Total Sale Profit: $0

Recommendation: –

Based on your inputs, we recommend…

Note: This projection doesn’t account for unexpected repairs, tax deductions, or changes in market conditions. Consult a financial advisor for personalized advice.

Rent vs. Sell Calculator: Determine the Best Financial Decision

This comprehensive Rent vs. Sell Calculator helps homeowners compare the long-term financial outcomes of keeping a property as a rental versus selling it. It factors in home equity, rental income, appreciation, taxes, and opportunity costs.

🔹 How This Rent vs. Sell Calculator Works

1. Property Details Input

  • Current Home Value: Market value of your property
  • Remaining Mortgage: Outstanding loan balance
  • Annual Costs: Property taxes and insurance

2. Rental Scenario Projection

  • Rental Income: Expected monthly rent (adjusted for vacancy rate)
  • Expenses:
    • Property management fees (typically 8-12%)
    • Maintenance costs
    • Appreciation rate (historical average 3-5%)

3. Sale Scenario Projection

  • Selling Costs: Realtor fees (5-6%), closing costs
  • Capital Gains Tax: Owed on profits (primary homes may qualify for exemptions)
  • Alternative Investment: Expected return if sale proceeds are invested (7% S&P 500 average)

4. Time Horizon

  • Compare outcomes over 1, 5, or 10+ years

Key Calculations

Rental Profit Formula

Total Rental Profit = 
  (Annual Net Rental Income × Years) + 
  (Property Value Growth)

Sale Profit Formula

Total Sale Profit = 
  (Sale Proceeds - Mortgage - Selling Costs - Capital Gains Tax) + 
  (Investment Growth)

When to Rent vs. Sell

Rent If:

✅ Positive cash flow (rent > expenses)
✅ Strong local rental demand
✅ Expecting property value appreciation
✅ Want long-term passive income

Sell If:

✅ Large equity stake would be freed up
✅ Declining neighborhood/rental market
✅ Need lump sum for other investments
✅ High maintenance costs

Example Scenario

Property: $500k home with $200k mortgage

  • Rent Option: $2,500/month, 5% vacancy, 3% appreciation
    • 5-Year Profit: $98,400 net income + $79,641 appreciation = $178,041
  • Sale Option: 6% selling costs, invest proceeds at 7%
    • 5-Year Profit: $267,851 (after taxes and investment growth)
      Recommendation: SELL (better by $89,810)

Why This Calculator Stands Out

✅ Comprehensive Comparison: Accounts for both income and appreciation
✅ Real-World Adjustments: Vacancy rates, management fees, selling costs
✅ Time-Value of Money: Projects alternative investment growth
✅ Mobile-Optimized: Works on any device

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