Decision tools
Sell Versus Rent Calculator
Compare an immediate sale with the income, expenses, and equity of holding — before you decide.
Direct answer: enter your sale numbers, rental economics, and how long you’d hold the property. This calculator compares selling today against renting it out and selling later, updating instantly as you type.
Sale details
Rental economics
Projection
Sell now
$110,750
Hold 5 years, then sell
$175,804
- Cumulative net cash flow
- -$10,500
- Future sale price
- $521,673
- Current mortgage balance
- $310,000
- Projected mortgage balance after 5 years
- $301,460
- Principal paid down
- $8,540
- Future net sale proceeds
- $186,304
- Total estimated value
- $175,804
What this means
Assumptions used
- Cash flow is straight-line — rent and expenses aren't inflated year over year, just multiplied by the holding period
- The future mortgage balance is projected month by month from your entered balance, rate, and principal & interest payment — the rate and payment are assumed to stay constant
- Other liens/payoffs (a HELOC, second mortgage, etc.) are not amortized — they're carried forward at today's amount
- Appreciation is entered as a flat annual rate, not guaranteed
What could change this
- Negative monthly cash flow compounding over a longer hold than modeled
- Appreciation coming in lower than the rate entered — try a 0% scenario alongside your expected rate
- Underestimated vacancy or a major capital expense (roof, HVAC) erasing years of projected cash flow at once
The decision has a shelf life
Run this again if your numbers or plans change.
Rates, rents, and your own circumstances all shift. Treat this as a snapshot for today’s numbers and your current plans, not a permanent verdict — revisit it if either changes meaningfully.
Methodology
How this comparison is calculated.
Sell now uses the same calculation as the Seller Net Proceeds calculator: sale price minus your current mortgage balance, any other liens entered, commission, and closing costs.
Hold for N years, then sell adds up net rental cash flow (rent, less vacancy, operating expenses, a capital-expense reserve, and your principal & interest payment) over the holding period, then adds the estimated net proceeds of a future sale at an appreciated price.
The mortgage balance used for that future sale is projected month by month from your entered current balance, annual interest rate, and monthly principal & interest payment — not today’s balance reused unchanged. The rate and payment are assumed to stay constant for the full holding period; refinancing, rate changes, missed payments, and loan modifications aren’t modeled. Any amount entered under “other liens/payoffs” (a HELOC, second mortgage, or similar) is notamortized — this tool only collects a rate and payment for the primary mortgage, so that figure is carried forward unchanged at today’s amount. Property taxes, insurance, HOA dues, and similar costs are not part of the principal & interest calculation — they belong in monthly operating expenses instead.
One simplification worth knowing: cash flow is straight-line — rent and expenses are not inflated year over year, just multiplied by the holding period. This is a simplified estimate, not a substitute for a property-specific analysis.
Worked example (hypothetical)
A $450,000 property with a $310,000 mortgage balance at a 6.5% interest rate, $2,500 monthly rent, 5% vacancy, $600 monthly expenses, $150 monthly capital-expense reserve, an $1,800 monthly principal & interest payment, 3% annual appreciation, and a 5-year hold estimates roughly $110,750 if sold now.
Holding for 5 years projects the mortgage balance down from $310,000 to about $301,460 — roughly $8,540 in principal paid down — for a future sale price near $521,670 and future net sale proceeds of about $186,300. Combined with an estimated -$10,500 in cumulative net cash flow (this loan’s payment is close to interest-only at this rate, so it pays down slowly and rent alone doesn’t quite cover the payment and expenses), total estimated value from holding comes to roughly $175,800 — about $65,050 more than selling now, driven mainly by appreciation and the projected equity gain, not the (slightly negative) monthly cash flow. Change any number above to see how the comparison moves. This example is illustrative only, not a market data point.
Downside cases
- Negative monthly cash flow (rent doesn’t cover expenses and the mortgage payment) compounds every month you hold — a small monthly shortfall becomes a large cumulative one over several years.
- Appreciation is not guaranteed. Try a 0% appreciation scenario alongside your expected rate to see how sensitive the comparison is.
- Vacancy and capital expenses are often underestimated — unexpected vacancy or a major repair (roof, HVAC) can erase several years of projected cash flow at once.
- An entered principal & interest payment that does not fully cover the interest at the entered rate will project a growing balance rather than a shrinking one — the calculator flags this with a warning rather than silently understating (or overstating) your future equity.
National considerations
Landlord-tenant law, rent-control rules, and typical vacancy/expense ratios vary significantly by state and city.
Utah considerations
Utah has no state-level real estate transfer tax, and rents and vacancy have differed meaningfully by county along the Wasatch Front — use local rent and vacancy figures rather than a national average where possible.
Author: Todd McClean, Realtor® | Real Estate Investment Strategist, CENTURY 21 Everest Realty Group. Reviewed July 21, 2026. This tool provides general real estate information and is not legal, tax, accounting, lending, securities, commodities, or financial-planning advice.
Related
Keep evaluating the decision.
Next step
Want a property-specific review?
This calculator uses simplified assumptions. A strategy review can pressure-test your specific numbers, market, and timeline.