True Cost

Move or Stay Calculator

You've outgrown your home — or maybe you just want a change. Compare all five paths, including staying put, so you can see exactly what each option costs and builds over the next 10 years.

Enter your ZIP codes to auto-fill local property taxes, insurance, appreciation rates, and rent estimates.

Your Situation

Enter your ZIP codes to auto-fill local rates and estimates

Your Current Home

This is your most important asset. Let's see what it's worth to you in each scenario.

Location

Property Details

$
$

Original Loan

$
%
yrs
mo
Current balance (estimated)$375,173
Monthly P&I$1,741/mo
Remaining term27 yrs 0 mo

Ongoing Costs

Annual Property Tax
$
$
$
%

If You Rent It Out (Options C & D)

$
% of rent
Current Equity$174,827
Home value$550,000
− Agent commission (5.5%)−$30,250
− Transfer / closing (1%)−$5,500
− Remaining mortgage−$375,173
= You'd walk away with$139,077

Your Next Home

Location

If You Buy

$
%

$150,000

%
Heads up: Your sale proceeds ($139,077) may not fully cover this down payment. You'd need $10,923 more.

Loan: $600,000 · P&I: $3,992/mo

New Annual Property Tax
$
$
$
%

If You Rent

$
%

Financial Context

$

Marginal rate: 22%

%
10 years
1 yr20 yrs

The Real Cost of Giving Up Your Rate

The most overlooked number in every "should I move?" conversation.

Your Current Rate

3.25%

$375,173 remaining

$1,741/mo

Today's Rate

7.00%

$600,000 new loan

$3,992/mo

Moving to a new home at today's rates increases your monthly payment by $2,251/month more — $27,012/year.

Extra interest over 10 years

$287,594 more

Payment multiplier

2.29× your current P&I

Based on your numbers

Stay Put appears to be your strongest financial move.

The do-nothing baseline. You stay in your home, keep your 3.25% rate, and pay your current mortgage. No transaction costs, no disruption — just steady equity growth as your home appreciates and your loan pays down.

Net worth at year 10: $900k
vs. next best (Keep & Rent): $256k

Note: this option costs $2,441/mo more upfront — only viable if your budget can absorb it.

This is a starting point, not advice. Your personal priorities — schools, commute, family proximity — matter as much as the numbers.

How net worth is calculated: All five paths start with $165k in liquid capital (the closing funds required to buy the new home) plus existing home equity. Keep & Buy has the highest monthly net outflow at $5,461/mo, setting the shared budget. Paths that cost less invest the difference at your 8% return rate. Net worth at year 10 = home equity + invested capital.

Recommended

Stay Put

Keep your home, make no changes

Monthly Cost

$2,441/mo

Net Worth (at horizon)

$900k

Monthly Cash Flow

$-2,441/mo

To Execute

No upfront cost

No transaction costs, no disruption. Your 3.25% rate keeps running and equity builds at 3%/yr — the pure do-nothing baseline.

Option A: Sell & Buy

Sell your home, buy a new one

Monthly Cost

$4,942/mo

Net Worth (at horizon)

$-8k

Monthly Cash Flow

$-4,942/mo

To Execute

$50,750

Locks in new rate for 30 yrs; ~$50,750 in transaction costs

Option B: Sell & Rent

Sell your home, rent your next place

Monthly Cost

$3,500/mo

Net Worth (at horizon)

$237k

Monthly Cash Flow

$-3,500/mo

To Execute

$35,750

Frees $139,077 in equity to invest; no maintenance costs

Option C: Keep & Buy

Rent out your home, buy a new one

Monthly Cost

$7,383/mo

Net Worth (at horizon)

$39k

Monthly Cash Flow

$-5,461/mo

To Execute

$165,000

Preserves your 3.3% rate; rental covers $181/mo of new mortgage

Option D: Keep & Rent

Rent out your home, rent your next place

Monthly Cost

$5,941/mo

Net Worth (at horizon)

$256k

Monthly Cash Flow

$-4,019/mo

To Execute

No upfront cost

Maximum flexibility; rental arbitrage of $-3,319/mo

Deep-Dive Analysis

Shaded line = recommended option. Lines starting lower reflect upfront transaction costs. Investment return of 8% applied to liquid holdings.

Stay Put

Net: $-2,441/mo

DTI: 20% — OK

Sell & Buy

Net: $-4,942/mo

DTI: 40% — Approaching limit

Sell & Rent

Net: $-3,500/mo

DTI: N/A (renting)

Keep & Buy

Net: $-5,461/mo

DTI: 42% — Approaching limit

Keep & Rent

Net: $-4,019/mo

DTI: N/A (renting)

Move or Stay — Guide & Research
🤔

How to Decide Whether to Move or Stay

The move-or-stay decision used to be mainly about life circumstances. Today, with mortgage rates 2–4× higher than the pandemic-era lows still locked in by millions of homeowners, it's also a major financial decision. Over 60% of existing mortgages carry a rate below 4% — giving up that rate to buy at today's rates is a real cost that needs to be quantified.

Run the numbers on all five scenarios: staying put, selling to buy, selling to rent, keeping and buying, and keeping and renting. The calculator above models all five paths simultaneously, so you can see exactly what each choice costs and builds over your planning horizon.

5–8%

Selling costs

Of home value

$400–$900

Rate lock penalty

Extra/mo at +3% rate

$250–500k

Cap gains exclusion

Tax-free (Sect. 121)

🗺️

The 5 Move-or-Stay Scenarios

Each path has a different financial profile. Here's how they compare at a glance:

ScenarioFlexibility
🏠 Stay PutLow
🔄 Sell & BuyMedium
🏡 Sell & RentHigh
🏘️ Keep & BuyLow
🌍 Keep & RentMedium
🔒

The Rate Lock Penalty — Your Biggest Hidden Cost

If you have a mortgage below 4% and are considering buying a new home at today's rates, your biggest cost isn't the new home's price — it's the monthly payment increase from giving up your old rate. Here's what that looks like on a $400,000 loan:

Old RateNew RateExtra/Mo
2.75%7.00%+$862
3.00%7.00%+$831
3.50%7.00%+$770
4.00%7.00%+$710
5.00%7.00%+$592

On a $400k loan. The new home must appreciate enough to offset this ongoing cost — which is why a longer hold period matters so much in today's rate environment.

📋

Capital Gains, Depreciation & Your Home

The tax rules around your home change significantly depending on which move-or-stay path you choose.

✅

Section 121 Exclusion

Exclude up to $250k (single) or $500k (married) of capital gains when selling your primary residence — tax free. You must have lived there 2 of the last 5 years.

⏱️

The 2-of-5 Year Clock

If you move out and rent your home, the Section 121 clock starts running. Rent for more than 3 years and you may lose the full exclusion when you eventually sell.

📉

Depreciation Recapture

If you rent your home and claim depreciation deductions, those amounts are "recaptured" at sale at a 25% federal rate — even if you later qualify for Sect. 121.

💡

Schedule E Advantage

Converting to a rental moves mortgage interest from a potential itemized deduction to a Schedule E rental expense — deductible dollar-for-dollar against rental income, regardless of whether you itemize.

❓

Move or Stay — Frequently Asked Questions

Should I sell my house and buy another one right now?

The key factor in today's market is your existing mortgage rate. If you have a rate below 4% and current rates are 6.5–7.5%, giving up that rate is a significant financial cost — often $400–$800/month in additional interest on a typical loan. Before selling, calculate your rate lock penalty, your expected appreciation in the new home, and how long you plan to stay. If you're staying 7+ years, the move may still make financial sense.

What is the "rate lock penalty" and how much does it cost?

The rate lock penalty is the extra monthly cost you pay by giving up a low existing mortgage rate when you buy a new home at today's higher rates. For example, trading a 3% rate for a 7% rate on a $400,000 loan increases your monthly payment by roughly $860/month — over $10,000/year. The calculator quantifies this exact cost for your specific situation.

Is it better to sell and rent, or keep my home and rent it out?

Keeping your home and renting it out (the "keep & rent" scenario) preserves your low rate, generates rental income, and maintains your exposure to home appreciation — but it adds landlord responsibilities and may affect your ability to qualify for a second mortgage. Selling and renting eliminates that complexity but forfeits your locked rate and may trigger capital gains. The right answer depends on your rental market, current rate, and financial goals.

What is the Section 121 capital gains exclusion?

Section 121 allows homeowners to exclude up to $250,000 (single) or $500,000 (married) of capital gains from selling their primary residence — tax-free. You must have lived in the home as your primary residence for at least 2 of the last 5 years. If you've been renting your home out, the clock starts ticking and you could lose this exclusion if you wait too long.

How long should I stay in my current home before selling?

From a pure cost recovery standpoint, you need to stay long enough for appreciation and equity buildup to cover selling costs (5–8% of home value) and buying costs (2–5%) on the new place. That's typically 3–5 years minimum. If you're also giving up a low mortgage rate, the breakeven extends further. The calculator models your specific breakeven based on appreciation assumptions.

Can I qualify for a second mortgage while keeping my first home?

Yes, but it depends on your debt-to-income ratio. Lenders typically allow you to count 75% of expected rental income from your current home to offset its mortgage payment for qualifying purposes. So if your current mortgage is $2,000/month and you can rent the home for $2,500/month, you can count $1,875 (75% of $2,500) against your DTI. The remaining $125/month counts as a liability.

What happens to my mortgage interest deduction if I convert my home to a rental?

When you rent out your home, the mortgage interest moves from a potential itemized deduction (Schedule A) to a rental expense deduction (Schedule E) — which is generally more valuable because it reduces rental income dollar-for-dollar regardless of whether you itemize. You also gain the right to deduct depreciation on the property (1/27.5 of the building's value per year), which is a powerful non-cash deduction.

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