Rent vs Sell Calculator

Deciding whether to keep a property as a rental or sell it? Compare the estimated annual return of each path using the values you enter.
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Taxes, insurance, maintenance, management — excludes mortgage

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Default 7%

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Default 3%

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Default 7%

Don't know the expected rent?

Get a market rent analysis for any U.S. address — comparable rentals, an expected range, and a recommended price.

Cash flow, returns, and a deal score.

Optional. Anything you leave blank comes from the county record.

How this is calculated

This tool compares two annualized returns:

Rent path = Annual cash flow + Annual appreciation, where cash flow = (rent − operating expenses − mortgage) × 12 and appreciation = value × appreciation rate.

Sell path = Net sale proceeds × alternative return, where net proceeds = value × (1 − selling costs) − mortgage balance, invested at the return you expect elsewhere.

It is a simplified, single-year comparison and does not model taxes (capital gains, depreciation recapture) or leverage over time. Treat it as a directional guide.

Worked example

A $400,000 home with a $220,000 balance, $2,600 rent, $1,500 mortgage, and $500 expenses nets $600/mo cash flow ($7,200/yr) plus $12,000 appreciation (3%) = $19,200/yr if rented. Selling at 7% costs leaves ~$152,000 net; invested at 7% that is $10,640/yr. Here, renting looks better.

Frequently asked questions

Does this include taxes?

No. Capital gains, depreciation recapture, and the primary-residence exclusion can significantly change the result. Consult a tax professional before deciding.

What alternative return should I use?

Use whatever you would realistically earn on the proceeds elsewhere — a diversified portfolio assumption of around 6–8% is common, but it is your choice.

How do I know the market rent?

You enter it. For a data-backed market rent on your address, run the market rent analysis linked on this page.

Related tools

Cash Flow Calculator
Estimate monthly and annual cash flow after mortgage, taxes, insurance, and operating costs.
Cap Rate Calculator
Calculate capitalization rate from net operating income and purchase price.
ROI Calculator
Measure cash-on-cash return and annual ROI on a rental property investment.
1% Rule Calculator
Check whether a property passes the 1% rule screen for rental income potential.

This calculator is for informational purposes only and uses the values you provide. It does not constitute financial, investment, tax, or legal advice, and should not be the sole basis for any investment or rental decision. Verify figures independently before acting.