Refi Vs Sale Sensitivity Calculator

Refi preserves asset while returning capital.

Asset value

Current debt

Refi LTV %

Refi cost %

Sale cost %

Tax rate on sale %

Refi cash out

$5,685,000

Sale net equity

$9,600,000

Refi − sale difference

-$3,915,000

How the math works

Refi cash = new loan − current debt − refi costs. Sale net = value − debt − sale costs − tax on gain.

Refi: $21M − $15M − $315k = $5.685M cash. Sale: $30M − $15M − $1.2M − $4.2M tax = $9.6M. Refi preserves $4M of proceeds as deferred tax.

How to Use

Enter asset value.
Enter current debt.
Enter refi LTV %.
Enter refi cost %.
Enter sale cost %.
Enter tax rate on sale %.
Read refi and sale proceeds.

Frequently Asked Questions

Why refi vs sell?

Refi returns equity while maintaining ownership and future appreciation/cash flow. Sale crystallizes gain (taxable) and ends ownership. Refi appropriate for long-term holds, 1031-ineligible situations, tax-deferred family planning. Sale appropriate when market-peak or capital needed for other deals.

Math differences?

Refi: tax-free cash out (not a taxable event). New debt replaces old. Owner continues operating. Sale: taxable gain (depreciation recapture + long-term gain). Full distribution. Ownership ends. Tax drag on sale often 25-35% of gain.

When each wins?

Refi wins in rising markets (future upside captured), high-tax investors (tax deferred), single-asset LLCs (no fund-level urgency). Sale wins in overheated markets (peak pricing), capital need (other deals), estate planning (step-up in basis at death).