Compare keeping your home with selling, investing, and renting.
Illustrative example · Edit to match your situation. No signup needed.
Home value minus outstanding mortgage debt.
Optional. Leave blank to estimate from the balance, rate, and remaining term. Exclude tax and insurance escrow; enter them below.
If entered, this payment replaces the term-based estimate until payoff; any balance remaining at the comparison date is deducted from home equity. Fixed-rate amortizing loans only; separate liens, ARMs, interest-only and balloon loans are not modeled.
Commission, closing fees, and other sale costs. Same percentage for a sale now or at the horizon.
$0 sale tax is a placeholder, not a finding that the sale is tax-free. Equity is not taxable gain. Enter federal and state estimates with your tax adviser. Refundable deposits and retained cash reserves are not modeled.
Try an amount and time horizon to see the comparison.
Utilities, renters insurance, parking, and other fees.
Nominal return after estimated investment taxes and fund fees. An assumption, not a forecast.
Applies to property tax and all non-mortgage owner costs, plus renter extras.
An S&P 500 fund can lose value. These steady-return scenarios illustrate sensitivity; they do not predict returns, model volatility, or estimate the likelihood of breaking even.
| Annual net return | Break-even starting rent |
|---|---|
| -2% Loss scenario | $1,487/mo |
| 5% Your assumption | $5,095/mo |
| 8% | $6,499/mo |
Sell the home, pay the mortgage and sale costs, subtract your estimated tax and moving costs, then invest all remaining proceeds. The portfolio return can represent an S&P 500 index fund after estimated fees and taxes.
Keep paying the fixed-rate mortgage and ongoing costs. Mortgage payments stop at payoff. At the comparison date, value the home after remaining debt, selling costs, and your estimate of future sale tax.
Each month, the less expensive housing path invests its savings. Break-even rent makes the ending portfolio equal to the owner’s net home proceeds plus investments. It does not treat stock returns as reliable rental income.
What is simplified? Smooth monthly growth; fixed interest rate; no refinancing; no homeowner income-tax deductions; sale taxes entered as dollar estimates rather than calculated. Estimated investment taxes are included in the net-return assumption, not charged again at the end. Spending down investments, emergency cash reserves, refundable deposits, and market volatility are not modeled.
Tax check: Home-sale gain depends on adjusted tax basis and selling expenses, not equity. Exclusion eligibility varies. Zero in the tax fields does not confirm an exclusion.
Educational estimates only—not financial, tax, legal, mortgage, or investment advice. Selling and investing involve costs and risk. Check your actual loan payoff, expenses, taxes, income, and risk tolerance with qualified professionals before acting.