Cash flow is only one layer
Positive rent does not automatically make keeping better, and negative cash flow does not automatically make it worse. Mortgage paydown, equity, appreciation, taxes, owner contributions, and opportunity cost all matter.
Part of the Owner Decision Center
Rent or Sell? Compare the full financial outcome.
See both paths after rental operations, mortgage paydown, taxes, future selling costs, and investment returns. Modeled monthly. Compared as after-tax net worth.
No email required Neutral assumptions Editable methodology
Inputs first
Build the complete scenario before reviewing the comparison.
The result, statements, chart, and sensitivity analysis appear below the assumptions.
Complete the assumptions above, then compare the two paths.
Have Botway review the property.
A calculator can model the numbers. A property review can test the assumptions against current rent, comparable sales, buyer demand, vacancy risk, building economics, and likely transaction costs.
How to read the decision
Both paths end in liquid value
The property is never compared at gross market value with a liquid portfolio. At each year, the model assumes a sale and subtracts selling costs, debt, capital-gains tax, and depreciation recapture.
Available cash is treated symmetrically
Positive after-tax rental cash flow can be invested. If the rental requires cash, the selling scenario can invest the same configurable share of that avoided contribution.
Taxes are estimates
Rental taxable income separates interest from principal and includes depreciation. Basis, exclusions, passive losses, recapture, and tax rates are editable because individual outcomes vary.
Opportunity cost compounds
After-tax sale proceeds are invested immediately and grow monthly after fees and tax drag. Portfolio liquidation tax is applied to modeled gains at the selected horizon.
Uncertainty deserves attention
Appreciation, rent, vacancy, repairs, capital work, legal restrictions, and investment returns cannot be predicted. Use scenarios and sensitivity results, not a single forecast in isolation.
Important: This calculator provides estimates for educational and planning purposes. Results depend on assumptions supplied by the user and may not reflect actual property performance, market conditions, financing terms, taxes, legal restrictions, transaction costs, or investment returns. Botway does not provide legal, tax, accounting, or investment advice. Consult qualified professionals before making a financial or real estate decision.
Rent vs. sell calculator FAQ
Should I rent or sell my property?
The stronger choice depends on rent, expenses, financing, taxes, appreciation, selling costs, investment returns, and your holding period. This calculator compares those assumptions as after-tax net worth.
Is rental income the same as cash flow?
No. Cash flow is what remains after vacancy, operating costs, debt service, capital spending, turnover costs, and estimated rental income taxes.
Should mortgage principal count as an expense?
Principal is a cash outflow but not an operating expense or income-tax deduction. The model separately reduces the loan balance and increases equity.
How does the calculator handle vacancy and management?
Both are editable. Vacancy reduces scheduled rent and management is calculated from effective collected income.
Does it include future selling costs?
Yes. At every annual point the model estimates what the owner would receive after selling costs, debt payoff, capital-gains tax, and depreciation recapture.
What is depreciation recapture?
Depreciation may reduce taxable rental income and adjusted basis. A future sale may tax some depreciation separately; the estimated rate is editable.
Can I use a primary-residence exclusion?
Only enter an exclusion you and your tax adviser believe applies. The calculator never assumes eligibility automatically.
How are passive rental losses treated?
Economic losses are always tracked. A separate editable percentage controls how much tax loss is assumed usable currently.
How are regulated properties handled?
Use only lawful rent and growth assumptions reviewed for the property. The calculator does not determine legal rent, deregulation, tenant rights, or vacant possession.
Is this tax or investment advice?
No. It is an educational planning estimate. Consult qualified legal, tax, accounting, investment, and real estate professionals.