Selling a home feels simple until you do the math. Before you hand over 5% to a real estate agent, pay off your mortgage, and park the proceeds in a CD, it’s worth getting your numbers straight. You might be surprised at how quickly the the wealth gap can compound between: 1) “I sold it and invested the proceeds” and 2) “I kept it and rented it out.”

This calculator helps you run both scenarios side by side, and takes into account estimated annual cash flows, longer-term wealth projections, optional tax treatments, and the leverage effect of holding a mortgaged asset. Enter your own numbers and let the model illuminate your options!

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Sell vs. Rent Calculator

Compare selling your home and investing the proceeds vs. keeping it as a rental. All figures are estimates based on your inputs.

🏠 Property Details

Current Market Value ($)

Original Purchase Price ($)

Current Mortgage Balance ($)

Mortgage Interest Rate (%)

Monthly P+I Payment ($)

Tax Filing Status

Single Married (MFJ)

Expected Annual Appreciation (%)

💸 If You Sell

Sale Commission (%)

Other Selling Costs (%)

Assume capital gains exclusion applies (primary residence, 2+ years of use in prior 5 years: $250K single / $500K MFJ)

Capital Gains Tax Rate (%)

Expected Total Annual Return on Invested Proceeds (%) Bonds/CDs: ~4–5% · Balanced: ~5–7% · Equity index: ~7–9%.

Income Tax Rate on Investment Returns (%) Adjust to your situation.

🔑 If You Rent

Expected Monthly Gross Rent ($)

Vacancy Rate (%)

Property Management (% of gross rent)

Monthly Property Taxes ($)

Monthly Insurance ($)

Monthly HOA Fees ($)

Maintenance & Repairs (% of gross rent)

CapEx Reserve (% of gross rent)

Other Monthly Expenses ($)

Assume passive losses will fully offset rental income (profit treated as tax-free)

Marginal Tax Rate on Rental Profit (%) Adjust to your situation.

This compares two possible scenarios that often provide conflicting signals. Cash flow is modeled as cumulative after-tax income per year. Estimated wealth is modeled as how much you might accumulate over time (equity, appreciation, and cumulative cash flow combined). One scenario can lead on cash flow while trailing on long-term wealth, which is precisely what makes questions like these INTERESTING!

💵

Year 1 Cash Flow

Enter your numbers and hit Calculate to see results.

📈

Estimated 20-Year Wealth

Enter your numbers and hit Calculate to see results.

How wealth is estimated — Rental: projected property value (less) remaining mortgage (plus) accumulated cash flows (no reinvestment return assumed on cash flows). Sell: investable proceeds compounded annually at your entered return rate, after income tax. Appreciation is not guaranteed.

Estimates only. Not financial or tax advice. Consult a qualified professional before making any decisions.

📤 Sell & Invest

🔑 Keep & Rent

📈 Estimated Wealth Projection

Rental wealth = projected property value (less) remaining mortgage (plus) accumulated cash flows. Sell wealth = investable proceeds compounded at your total after-tax return rate. Appreciation is not guaranteed.

Disclaimer: For educational purposes only. Not financial, tax, legal, or investment advice. All outputs are estimates based on your inputs and actual results will of course vary. Appreciation is speculative and not guaranteed. Tax treatment depends on your specific situation; consult a qualified CPA or advisor before making any decisions.