Rent vs Sell Calculator
Compare the financial outcomes of renting vs selling your property. See which option builds more wealth over time.
How it works
This calculator compares two scenarios: keeping the rental property vs selling and investing proceeds elsewhere. It projects your total wealth in each scenario after your specified time period, considering appreciation, cash flow, and alternative investment returns.
Example
Current equity: $200,000, After-tax proceeds: $180,000, Monthly cash flow: $500, 10 years, 3% appreciation, 7% alt return → Rent wealth: $329,000, Sell wealth: $354,000. Selling wins by $25,000.
FAQ
Should I rent or sell my property?
It depends on cash flow, appreciation expectations, tax situation, and your investment goals. Use this calculator to compare the financial outcomes over your time horizon.
What is current equity in the calculation?
Current equity is your property's current market value minus any outstanding mortgage balance. This represents your ownership stake.
How do I estimate after-tax sale proceeds?
Subtract capital gains tax, realtor fees (typically 6%), and closing costs from your net proceeds. Consider your cost basis and holding period for tax calculations.
What should I use for alternative investment return?
Use the expected return of where you'd invest the sale proceeds - stock market average is ~10%, bonds ~4-6%, or other real estate investments.
Does this include tax benefits of rental property?
This simplified calculation doesn't include depreciation, tax deductions, or other rental tax benefits. Consult a tax professional for a complete analysis.
What if my cash flow is negative?
Negative cash flow means you're paying to keep the property. The calculator will show this cost, which may make selling more attractive unless appreciation is very strong.