Ignoring the equity that is trapped
A rental with strong cash flow can still be a weak return if a large amount of equity is sitting idle in it.
Sell vs. Keep Calculator
Net proceeds today against what the property earns if you hold it.
Assumptions · Sale
Assumptions · Improve first
Assumptions · Keep as a rental
Percent of effective gross income
Percent of gross scheduled rent
Analysis
Net proceeds as-is
$250,875
- Commissions
- $26,250
- Seller closing costs
- $7,875
- Loan payoff
- $240,000
- Net if you improve first
- $263,275
- Difference from improving
- $12,400
- Annual cash flow if you keep it
- -$2,831
Your analysis is complete.
These are assumptions, not verified facts about a property.
Add an address to carry these numbers into Property Intelligence™ — the full advisory product, with evidence, documents and next steps.
Ask a questionAbout this calculator
- What it is
- A sell-versus-keep calculator that compares net proceeds today against the return from holding the property as a rental.
- Who it is for
- Owners deciding whether to sell, rent out, or hold a property they already own.
- The problem it solves
- Owners compare sale price to what they paid. The real comparison is net proceeds after every cost against the ongoing return of continuing to own.
The formula
Net proceeds = sale price − payoff − commissions − transfer taxes − concessions − repairs
Selling costs commonly run 6% to 10% of the sale price. Holding return is annual cash flow plus principal paydown plus any appreciation, measured against the equity that a sale would free up.
How to use it
01
Estimate the sale price
From closed comparable sales, adjusted for condition.
02
Subtract every cost of selling
Loan payoff, commissions, transfer taxes, concessions and pre-sale repairs.
03
Compute the rental case
Run the property as a rental: cash flow after vacancy, expenses and reserves.
04
Compare returns on the same equity
Measure the holding return against what the freed equity could earn elsewhere.
When to use it
- Deciding whether to sell a home you are moving out of.
- Evaluating an inherited property.
- Testing whether a long-held rental still earns its equity.
Common mistakes
Underestimating selling costs
Commissions, transfer taxes, concessions and pre-sale repairs routinely reach 8% to 10%.
Skipping the tax question
Capital gains treatment and the primary-residence exclusion can change the answer entirely. Confirm with a tax professional.
Questions people ask
Should I sell my house or rent it out?
Sell when the equity would earn more elsewhere or the property would not cash flow as a rental. Keep it when it cash flows after full expenses and reserves and the return on trapped equity is competitive.
How much will I net from selling my house?
Sale price less loan payoff, commissions, transfer taxes, concessions and pre-sale repairs — commonly 6% to 10% of the sale price in total costs.
Should I renovate before selling?
Only where the work removes an objection or a financing obstacle. Kitchens and baths rarely return their full cost; roofs, systems and cosmetics that fail an inspection usually do.
What Property Intelligence™ adds
Property Intelligence prices both paths for your actual address using verified tax records, real comparable closings and documented condition, and states a recommendation with its confidence.
The next calculation
Calculator: Sell vs. Keep Calculator