Tiny Toolkit

Rent vs Sell Calculator — Which Makes You More Money?

Deciding whether to sell a property now or hold it as a rental is one of the most common dilemmas property owners face. This calculator models both scenarios side-by-side: net equity if you sell today versus total return from rental income plus future appreciation if you hold and sell later. Adjust the hold period and appreciation rate to stress-test the decision under different market conditions.

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Frequently Asked Questions

What does 'net equity now' mean?
Net equity now is what you would actually pocket if you sold today: current property value minus your remaining mortgage minus estimated selling costs (typically 6% for agent commissions and other closing costs).
Why does the calculator hold the mortgage balance constant?
This is a simplification; in reality your mortgage balance decreases as you make payments. Holding it constant makes the calculation conservative and easier to understand. For a more precise analysis, use an amortization schedule to project the balance at the future sale date.
What appreciation rate should I use?
The national long-run average for home appreciation is 3–4% annually. For specific markets, use recent Zillow, Redfin, or local MLS data. High-growth markets have historically delivered 5–8% in strong cycles, while some markets appreciate at or below inflation.
Does this include taxes on the rental income or sale?
No. This is a pre-tax comparison. Rental income is subject to ordinary income tax (offset by depreciation), and capital gains on sale are subject to capital gains tax. Consult a tax advisor to factor in your specific tax situation.

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