Use our Sell vs Rent Calculator to compare the financial impact of selling your home now versus renting it out. Factor in all costs, taxes, appreciation, and rental income to make the best decision for your situation.
Our sell vs. rent calculator compares the financial outcome of selling your home now versus renting it out for a period and then selling (or keeping it). It models costs, taxes, appreciation, rental income, and investment returns.
Net proceeds = Sale price − Selling costs (agent commissions, closing costs) − Mortgage payoff − Refurbishing costs − Capital gains tax. A $250,000 exclusion applies if the primary residence toggle is on and you meet the 2-of-5-year rule.
We simulate each year: rental income (adjusted for occupancy and increases), minus vacancy, management fees, maintenance, HOA, insurance, taxes, capital improvements, and make-ready costs. Rental profit tax applies at your marginal rate. If depreciation is enabled, we model annual depreciation and recapture at sale. Home value appreciates each year by your chosen rate. After the holding period, we calculate final sale proceeds (or sum rental cash flows only if "Do not sell after renting" is on).
If you sell, you can enter an after-tax annual return. We compound net proceeds at this rate to show the future value of selling and investing.
Mortgage payments during rental are not modeled (assumes interest-only or paid off). All values are in today's dollars. Use realistic vacancy, appreciation, and expense inputs. Consult a tax advisor for capital gains and depreciation.