Sell or Keep the House Calculator

Use this calculator to compare the benefit of selling the house now or keeping it for longer.

Sell or Keep the House

This tool helps you:

  • Evaluate whether it makes financial sense to sell your house or continue owning it. It compares the costs and benefits of each option, helping you understand the long-term impact on your wealth.

  • For example, if you sell your house now, invest the proceeds of sale, and rent a new place, the tool can estimate whether this strategy could accumulate more wealth over time than holding onto the property. By modeling both scenarios, you can make a more informed decision that balances housing needs, investment opportunities, and your financial goals.

The house I am keeping

Current property value
The benefit of keeping this house: Monthly income Annual growth
Rent revenue
(This includes the Airbnb & rent income you're collecting if this is an income property. Input zero if this is solely for your residence)
Future property value growth
(a.k.a. home appreciation / depreciation rate)
The costs of keeping this house: Monthly cost Annual growth
(inflation)
HOA fees
Property tax due
Homeowner insurance
Utility expenses
Maintenance & repair

Outstanding mortgage of this house

Original mortgage amount
Loan term   years
Mortgage interest rate
Loan start date
Current loan balance
Loan payment   a month
Mortgage insurance (PMI)   a month
My highest federal tax rate bracket is
(This is used for the calculation of the itemized deductions, of the interest you pay on a mortgage loan, on your federal tax return. Input zero if your mortgage interest is not tax-deductible)

What if I want to sell it now?

I may spend to renovate the house first.
The house can be sold more after the renovation.
That is to say, the selling price will become .
The selling cost is of the selling price, around .
(including the closing costs and the commissions you need to pay to the agents.)
My original purchase price of this house was .
The capital gain from the sale of this house will be .
To calculate the capital gain tax, check the following conditions applied to you:
This house is my personal residence, not an investment or rental property.
I have lived in this place for at least two years.
I file the federal tax return jointly with my spouse.
I don't have to pay any capital gain tax on this house for other reasons.
Based on the conditions selected above, the taxable capital gain from the sale of this house will be .
I may owe the capital gain tax of .
(Homeowners do not need to pay capital gains tax on real estate profits up to $250,000 for single filers or $500,000 for married couples filing jointly if they owned and lived in the home as their primary residence for at least two out of the five years before the sale.)
If I need to find a new place to live, the monthly rent will be , including pet fee, utilities, and renter's insurance.
Rent inflation rate   a year
Investment yield   a year
(the expected return of investment when you invest the proceeds of selling the home, such as investments in stocks or bonds.)

How long do I want to compare?

I want to compare the forecast for the next years.
At the end of projection period, this house price is expected to be .

Gain (+) or loss (-) of the keeper vs. the seller

Now

The wealth of the keeper [1] [4]
The wealth of the seller [2] [5]
Seller's gain (+) or loss (-) [3] [6]
  1. The wealth of the keeper now = current property value - current mortgage loan balance.
  2. The wealth of the seller now = selling price - current mortgage loan balance - renovation cost - selling cost - capital gain tax.
  3. = [2] - [1].
  4. The future wealth of the keeper = ending property value - mortgage loan balance + accumulated rent revenue - accumulated costs of keeping this house.
  5. The future wealth of the seller = the wealth of the seller now + accumulated investment income - accumulated rent expense.
  6. = [5] - [4].

Accumulated Wealth Over Time

Content created by

AlexCFA, FSA, FRM, MBA

Alex is a seasoned finance professional with over 18 years of experience in investment management and financial technology. He began his career as a financial advisor and later led large-scale budgeting and risk management initiatives at global consulting firms. He also brings extensive experience as both an investment analyst and a software engineer. Alex is a CFA® charterholder, Fellow of the Society of Actuaries (FSA), and Financial Risk Manager (FRM®).

Content published on 2024-06-01. Last reviewed and updated on 2026-09-12.

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