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Rent vs sell calculator
Moving out? Compare selling now and investing the money with keeping the house as a rental: where each choice leaves you after the years you pick.
Keeping it as a rental leaves you ahead by
$0
after 10 years, before income tax.
| Cash flow in year 1 | $0 |
|---|---|
| Mortgage payment | $0 |
| Cash flow over the period, invested | $0 |
Taxes are left out because they can swing the answer: if you lived in the home 2 of the last 5 years, selling within 3 years of moving out can keep up to $250,000 of gain tax-free ($500,000 married). Renting longer can lose that, and depreciation taken while renting is taxed when you sell. Check with a tax professional.
How the comparison works
- Sell now: today's value minus selling costs and the mortgage balance, invested at the return you enter.
- Keep and rent: each year's cash flow (rent after vacancy, minus costs and the mortgage) is added up and invested at the same return. At the end, the house is sold: future value minus selling costs and the remaining balance.
The two totals are what you would have at the end, before income tax. The gap is the answer for your assumptions; change the price growth and the investment return to see how sensitive it is.
Questions to ask before you decide
- Does the rent cover the mortgage and the costs with room to spare? Check with the rental property calculator.
- Is a big repair coming: roof, HVAC, water heater?
- Do you want to be a landlord, or pay a manager 8 to 12 % of the rent?
- How much gain would be tax-free if you sold within 3 years of moving out?
Questions
Should I rent out my house or sell it?
Compare where each choice leaves you after the years you care about. Keeping it pays off when the rent comfortably covers the mortgage and costs and you expect the home to keep gaining value; selling pays off when cash flow is thin, a big repair is coming, or you would lose a large tax-free gain.
What about the $250,000 capital gains exclusion?
If you owned the home and lived in it as your main home for at least 2 of the 5 years before the sale, up to $250,000 of gain ($500,000 for most married couples) can be tax-free. Once you move out and rent it, you have about 3 years to sell and still meet that test. Depreciation claimed while renting is taxed when you sell even with the exclusion.
Why is a low mortgage rate a reason to keep the house?
A loan at 3 % or 4 % costs far less than a new one would, so the rent goes further. Selling gives that loan up for good.
Does the calculator include taxes?
No. It compares pre-tax results so the main numbers are clear. Taxes can change the answer a lot, especially the home sale exclusion and depreciation recapture, so check them with a tax professional before you decide.
Sources
Next steps
Last updated November 5, 2026.