Sell vs Keep Rental Property Calculator

The Sell vs Keep Rental Property Calculator compares selling a rental property now with keeping it for a chosen period. It models selling costs, capital-gains tax, rent, expenses, mortgage payments, appreciation, and an alternative return assumption.

Comparison model

The calculator estimates net proceeds today, then projects a future property value and future sale costs if you keep the property. It compares that result with investing the proceeds from a sale at the alternative return.

$\text{Future home value}=\text{Current value}\times(1+\text{Appreciation})^{\text{Years}}$ $\text{Sell option}=\text{Current value}-\text{Debt}-\text{Selling costs}-\text{Tax}$ $\text{Keep option}=\text{Future net proceeds}+\text{Rental cash flow}$

The optional extended inputs also model mortgage balance reduction and invested cash flow.

Worked example

For a $500,000 property with$300,000 debt, $2,000 monthly rent,$800 monthly expenses, and a five-year hold, the calculator totals rental income and costs over 60 months, grows the property using the entered appreciation rate, estimates future sale costs and tax, and compares the result with selling now.

Questions

Does this predict the better investment?

No. It compares only the assumptions entered. Vacancy, repairs, refinancing, insurance, taxes, and market changes can materially alter the result.

Does it include every tax rule?

No. Capital-gains, depreciation recapture, principal residence rules, and local taxes vary by jurisdiction.

Why use an alternative return rate?

It represents what sale proceeds might earn elsewhere. Changing it tests the opportunity cost of keeping the property.

Limitations

This is a scenario model, not financial or tax advice. Verify rental economics, legal obligations, financing terms, and current tax treatment with qualified professionals.