Rent vs. Sell Calculator
Deciding whether to sell a property today or hold it as a rental is one of the highest-stakes forks a real estate owner faces, and gut instinct is a poor guide. This calculator turns the decision into a side-by-side financial comparison. On one side it computes your clean net proceeds if you sell now, after deducting agent commissions and closing costs. On the other it models the landlord path: the cumulative net rental cash flow you would collect over your intended holding period, plus the property's projected future value after years of appreciation, minus the selling costs you would eventually pay when you exit. Laying the two totals next to each other exposes whether the long-term wealth of holding truly outweighs the simplicity and liquidity of cashing out today. Flex the appreciation rate and holding period to pressure-test the decision under optimistic and conservative assumptions before you commit.
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Results
Results update live as you type. Estimates only — not financial, tax, or investment advice.
The Formula
Rent Scenario Value = Cumulative Net Rent + (Projected Future Value − Selling Costs)
Understanding the Rent vs. Sell Calculator
The rent-versus-sell decision is really a question of what your equity can earn. Selling converts your equity to cash today, minus 7–9% in transaction costs, giving you liquidity and freedom from being a landlord. Renting keeps the property working — collecting cash flow, paying down the mortgage, and compounding appreciation — but ties up your equity and hands you the responsibilities and risks of ownership. This calculator lays both totals side by side so the comparison is grounded in numbers rather than gut feel.
The math is only half the decision; taxes and opportunity cost decide the rest. If the property was your primary residence, the Section 121 exclusion can shield up to $250,000 of gain ($500,000 for a married couple) — but only if you sell within three years of moving out, a benefit you forfeit by renting too long. As a rental you gain depreciation deductions, but eventually face depreciation recapture at sale. Weigh the projected rental wealth here against what you could earn by investing the sale proceeds elsewhere.
Frequently Asked Questions
Should I rent or sell my house?
Sell if you need the liquidity, don't want to be a landlord, or can capture a tax-free primary-residence gain. Rent if the property cash-flows, you want long-term appreciation and loan paydown, and you can manage the responsibilities. Run both scenarios numerically, then weigh taxes and your tolerance for being a landlord.
What is the 2-out-of-5-year rule?
Under Section 121, if you owned and lived in a home as your primary residence for at least two of the last five years, you can exclude up to $250,000 of capital gain ($500,000 married filing jointly) from tax when you sell. Renting the property for too long can cause you to lose this valuable exclusion.
What is depreciation recapture when I sell a rental?
While you own a rental, you deduct depreciation to reduce taxable income. When you sell, the IRS 'recaptures' those deductions, taxing them at a rate up to 25%. This is separate from capital gains tax on appreciation and is a key cost to weigh — a 1031 exchange can defer both.