Rent vs Sell Calculator

Calculate Net Gain or Loss









Formula

The formula to calculate Net Gain or Loss from Renting versus Selling is:

\[ \text{Net Gain/Loss} = (R - C) \cdot T - (S - P) \]

Where:

Rent vs Sell Definition

Rent vs Sell is a decision-making scenario often faced by property owners. It refers to the choice between renting out a property to generate a steady stream of income over a period of time (rent) or selling the property outright to realize a lump sum profit (sell). This decision is influenced by several factors including the property’s location, market conditions, the owner’s financial situation, and long-term goals.

Example Calculation

Let's consider an example:

Using the formula to calculate Net Gain or Loss:

\[ \text{Net Gain/Loss} = (2,000 - 500) \cdot 24 - (300,000 - 250,000) = 36,000 - 50,000 = -14,000 \, \text{\$} \]

This demonstrates that with the given values, the net loss would be $14,000.