Rent vs Sell Calculator

Trying to decide whether to sell your house now or rent it out? This tool compares the two paths in dollars: sell today and walk away with net proceeds, or hold for N years collecting cash flow and selling later at an appreciated price.

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What the model compares

Sell now: Price×(1−selling costs) − mortgage | Rent then sell: Price×(1+g)^n×(1−costs) − mortgage + cumulative cash flow

The rent-then-sell path adds two components: appreciation (compounded at your assumed rate) and cumulative rental cash flow, then subtracts the same selling costs later. This simplified model assumes the mortgage balance stays constant — a slightly conservative choice, since amortization would actually lower it.

Selling costs: US residential sellers typically pay 6–8% all-in (commission + title + concessions). If your market is flat and cash flow is negative, renting rarely beats selling; the rent path wins on strong cash flow, appreciation, or when selling costs would be painful at your price point.

Frequently asked questions

What selling costs should I enter?

6–8% covers commission, title and settlement in most US markets. Add more if you expect buyer concessions or repairs.

Does this include taxes?

No — capital gains and depreciation recapture are deal-specific. A 1031 exchange or primary-residence exclusion can change the answer materially; consult a tax pro before deciding.

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Sources & notes

Last updated: 2026-09-08