Rent or Sell Analysis
Keep your property for a long term rental hold vs selling and investing in stocks or similar
Note: If you have high equity, increasing your leverage to a relatively safe 60%+ LTV via cash out refi for a second home or 1031 exchange to a more expensive property will usually significantly increase your returns.
Note: If you have high equity, increasing your leverage to a relatively safe 60%+ LTV via cash out refi for a second home or 1031 exchange to a more expensive property will usually significantly increase your returns.
Keep & Rent
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Sell & Invest
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General Settings
Property Appreciation
Mortgage Information
Rental Scenario
Tax Calculations
Selling Scenario
Pre-Sale Costs
Transaction Costs
Taxes & Investment
Mortgage Payment Calculator
Loan Details
Payment Breakdown
Monthly Payment:
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Principal & Interest:
$0
Total Interest Paid:
$0
Total Amount Paid:
$0
Extra Payment Analysis & Effective Interest Rate
Extra Monthly Payment
Or Target an Effective Rate
One-Time Lump Sum Payments
New Monthly Payment:
$0
Payment Multiplier:
1.0x
Loan Balance Over Time
Impact Comparison
STANDARD LOAN
Payoff Time:
0 years
Total Principal:
$0
Total Interest:
$0
Total Amount Paid:
$0
Nominal Rate:
0.0%
WITH EXTRA PAYMENTS
Payoff Time:
0 years
Total Principal:
$0
Total Interest:
$0
Total Amount Paid:
$0
Effective Rate:
0.0%
SAVINGS
Time Saved:
0 years
Interest Saved:
$0
What is “Effective Interest Rate”?
The effective interest rate shows what your actual borrowing cost becomes when making extra payments.
While your nominal rate stays the same (e.g., 6.25%), paying extra reduces the total interest you pay over the life of the loan.
The effective rate calculates what interest rate on the original loan would have resulted in the same total interest
you’ll actually pay with your accelerated payment schedule. Lower is better!
Down Payment vs Extra Payment Strategy w/Interest Rate Buydown
Compare putting more money down vs keeping cash for extra monthly payments
Loan Balance Over Time
Cumulative Cost (Today’s $)
Strategy Comparison Inputs
Strategy A: Larger Down Payment
🎚️ Rate Adjustment
Adjusted Rate: 5.35%
Loan Details
Nominal Interest Rate:
5.35%
Effective Interest Rate ℹ️
The actual borrowing cost. For Strategy A without extra payments, this equals the nominal rate.
:
5.35%
Down Payment:
$0
Loan Amount:
$0
Base Monthly Payment:
$0
Extra Monthly Payment:
$0
Total Monthly Payment:
$0
Total Costs
Total Interest:
$0
Total Payments:
$0
Total Cost (Nominal):
$0
Total Cost (Today’s $):
$0
Strategy B: Extra Monthly Payments
Rate Adjustment
Adjusted Rate: 5.35%
Loan Details
Nominal Interest Rate:
5.35%
Effective Interest Rate ℹ️
The actual borrowing cost when making extra payments. Shows what rate would result in the same total interest on a standard loan.
:
5.35%
Down Payment:
$0
Loan Amount:
$0
Base Monthly Payment:
$0
Extra Monthly Payment:
$0
Total Monthly Payment:
$0
Total Costs
Total Interest:
$0
Payoff Time:
0 years
Total Cost (Nominal):
$0
Total Cost (Today’s $):
$0
Strategy Comparison Results
INTEREST DIFFERENCE
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TOTAL COST DIFFERENCE (Nominal)
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REAL COST DIFFERENCE (Today’s $)
$0
INFLATION IMPACT
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Enter values to see recommendation
Strategy Notes & Inflation Impact
Strategy A uses all extra cash as down payment for lower monthly payments.
Strategy B keeps the minimum down payment and spreads extra cash over monthly payments.
Inflation Consideration: Future payments are worth less than today’s money. At 3% inflation, $1000 in year 30 only has the buying power of ~$400 today! This is why “Today’s $” calculations are more meaningful – they show what everything costs in current purchasing power.
Key Insight: The longer the loan term, the more inflation helps borrowers. Strategy A (30 years) vs Strategy B (shorter term) – inflation benefits the longer loan more, which can change the comparison significantly.
Strategy B keeps the minimum down payment and spreads extra cash over monthly payments.
Inflation Consideration: Future payments are worth less than today’s money. At 3% inflation, $1000 in year 30 only has the buying power of ~$400 today! This is why “Today’s $” calculations are more meaningful – they show what everything costs in current purchasing power.
Key Insight: The longer the loan term, the more inflation helps borrowers. Strategy A (30 years) vs Strategy B (shorter term) – inflation benefits the longer loan more, which can change the comparison significantly.
Loan Comparison
Compare two different loan scenarios side by side
Loan A
LOAN A DETAILS
Monthly Payment:
$0
Payoff Time:
0 years
Total Principal:
$0
Total Interest:
$0
Total Amount Paid:
$0
Effective Rate:
0.0%
Loan Balance Over Time
Loan B
LOAN B DETAILS
Monthly Payment:
$0
Payoff Time:
0 years
Total Principal:
$0
Total Interest:
$0
Total Amount Paid:
$0
Effective Rate:
0.0%
Disclaimer: This calculator is inherently imprecise, and provided for informational and educational purposes only. It does not constitute real estate, investment, tax, legal, or financial advice, and should not be relied upon as a recommendation to sell, retain, lease, or otherwise dispose of any property or to invest in any particular asset class or investment product.
Decisions regarding whether to sell a property, retain it as a rental, or invest proceeds elsewhere involve real estate market considerations, tax consequences, investment objectives, risk tolerance, financing considerations, and legal issues. Users should consult qualified professionals, which may include a real estate broker regarding rent, property values and market conditions, a CPA regarding tax implications, a fiduciary financial planner or registered investment adviser regarding investment considerations, and an attorney regarding legal matters.
Decisions regarding whether to sell a property, retain it as a rental, or invest proceeds elsewhere involve real estate market considerations, tax consequences, investment objectives, risk tolerance, financing considerations, and legal issues. Users should consult qualified professionals, which may include a real estate broker regarding rent, property values and market conditions, a CPA regarding tax implications, a fiduciary financial planner or registered investment adviser regarding investment considerations, and an attorney regarding legal matters.