Sell vs. 1031 Exchange Calculator
See the long-term cost of cashing out. Compare your net worth after paying the tax and reinvesting what's left, versus deferring the full gain through a 1031 exchange.
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Side-by-side comparison
The tax you don't pay keeps working
When you sell without a 1031 exchange, a large portion of your equity immediately goes to the IRS — and that money stops compounding for you. The 1031 exchange lets you defer the capital-gains tax entirely, keeping the full equity invested and growing.
- The power of a larger base. Compounding on $1,000,000 vs. $750,000 for 15 years at 6% produces a difference that dwarfs the original tax bill.
- Serial exchanging. Each time you roll into a new property via a 1031, the deferred gain carries forward. Investors who keep exchanging can defer indefinitely.
- Stepped-up basis at death. If you exchange until death, your heirs receive the property at its fair market value on your date of death — potentially eliminating the deferred tax entirely.
How to use this calculator
Enter your total equity before tax, the estimated tax bill if you sold today, an expected annual return, and your intended hold period. The calculator shows what each path produces and highlights the exchange advantage in dollar terms.
Educational estimate only. This tool is for general illustration and is not tax, legal, or investment advice. It uses simplifying assumptions and the figures you enter, which may not reflect your situation or current law; depreciation recapture, net investment income tax, state taxes, and other items can change the result materially. Figures are illustrative and not guaranteed. Consult your own qualified tax and legal advisors before acting. Not an offer or solicitation. DST interests are sold only to accredited investors via private placement memorandum. Securities offered through Aurora Securities, Inc. (ASI), member FINRA/SIPC; Baker 1031 Investments is independent of ASI.