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Rent or Sell Calculator

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When you own property, deciding whether to rent it out or sell it can be a significant decision. To aid in this process, tools like the “Rent or Sell Calculator” can be extremely helpful. This calculator allows property owners to compare the financial outcomes of renting versus selling based on various economic assumptions over a specified period.

Purpose and Functionality of the Calculator

The primary purpose of the Rent or Sell Calculator is to provide a detailed financial analysis to help owners make informed decisions about their properties. It considers various factors, such as the potential sale price, rental income, property value appreciation, and associated costs, to determine the most beneficial option financially.

Inputs Needed:

  1. Property Sale Price (P): The potential sale price of the property.
  2. Estimated Monthly Rent (R): The monthly rental income expected.
  3. Annual Rent Increase (%R): The estimated yearly percentage increase in rent.
  4. Annual Property Value Appreciation (%P): The expected annual increase in the property’s value.
  5. Selling Costs (%S): Percentage of the sale price that will go towards expenses like realtor fees and closing costs.
  6. Years of Comparison (Y): The number of years over which the comparison is made.
  7. Maintenance and Other Costs (M): Yearly expenses associated with maintaining the property if rented.
  8. Opportunity Cost Rate (O): The rate of return expected from investing the sale proceeds elsewhere.


The calculator uses the above inputs to compute the Net Present Value (NPV) of future rental income and compares it to the net proceeds from selling the property after accounting for selling costs and the potential future value of those proceeds if invested.

Rent Scenario:

  • Annual Rent Income: Calculated by multiplying the estimated monthly rent by 12 and subtracting annual maintenance costs.
  • Projected Rent for Each Year: Adjusted for the expected annual rent increase.
  • Net Present Value of Renting (NPVR): Sum of discounted future rent income minus maintenance costs over the specified years.

Sell Scenario:

  • Net Sale Proceeds: Property sale price minus selling costs.
  • Future Value of Sale Proceeds: Future value of the net sale proceeds if invested at the given opportunity cost rate.


  • The decision is made by comparing the NPVR with the Future Value of the sale proceeds. If NPVR is higher, renting out the property is more beneficial; otherwise, selling might be preferable.

Step-by-Step Examples

Let’s consider a simple example:

  • Property Sale Price: $300,000
  • Estimated Monthly Rent: $1,500
  • Annual Rent Increase: 2%
  • Annual Property Value Appreciation: 3%
  • Selling Costs: 6%
  • Years of Comparison: 5
  • Maintenance and Other Costs: $1,200 per year
  • Opportunity Cost Rate: 4%

Using these inputs, the calculator would perform the calculations to determine whether the total net benefit of renting exceeds the net proceeds from selling.

Relevant Information Table

Property Sale Price (USD)300,000
Estimated Monthly Rent (USD)1,500
Annual Rent Increase (%)2
Property Value Appreciation (%)3
Selling Costs (%)6
Years of Comparison5
Maintenance Costs (USD/year)1,200
Opportunity Cost Rate (%)4


The Rent or Sell Calculator serves as a crucial tool for property owners wrestling with the decision to either rent out their property or sell it. By providing a clear financial comparison based on inputted values and assumptions, it offers a grounded perspective on which option might yield greater financial benefits. Whether you’re looking to maximize your investment returns or need guidance on managing your real estate assets, this calculator can provide valuable insights tailored to your unique situation.

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