Financial

Rent vs Sell Calculator

Determine if selling your home or keeping it as a rental property yields higher long-term returns. Computes landlord cash flow and ROE.

Estimated Home Value ($)

Remaining Mortgage Balance ($)

Selling Costs (broker fee, closing %)

Target Monthly Rent Income ($)

Total Landlord Monthly Expenses ($)

How to Calculate: Formula & Steps

Finds net cash proceeds from an immediate sale and compares it with net rental income to calculate Return on Equity.

Formula Used:Annual Rent Cashflow = (Rent - Costs) × 12; Sale Proceeds = Value - Mortgage - Fees; ROE = Cashflow ÷ Proceeds

Selling nets $100,000. Renting nets $500/mo ($6,000/yr), yielding a 6% Return on Equity.

Failing to account for vacancies, landlord insurance premiums, and ongoing maintenance reserves in expenses.

A landlord ROE below 5-6% usually suggests selling is more profitable than renting.

What is landlord Return on Equity (ROE)?

A financial metric comparing net rental income to the cash equity that would be unlocked by selling the property.