This calculation can only be determined by knowing what the real estate market is like in your area. What is the norm for homes in your neighborhood? Three bedrooms or four? What do different configurations sell for? This can be very different in different neighborhoods and different parts of the country. Where I live, with houses almost entirely from the 1920's and 30's, it is very normal to have 4-5 bedrooms, but no master bath and generally small bathrooms. In other areas, not having a substantial master bath would be a deal breaker as large master baths are the norm. So I'd suggest either studying the real estate market in your area or consulting with a realtor, as the loss of a bedroom could, in many areas, reduce the value of your house more than you would add from a larger master bath and closet.

Talk to some local real estate agents (get more than one opinion) and ask them about the projected effect on the value of your house. If I was looking at the house, I wouldn't object to a 3 bedroom home if there was additional space elsewhere in the house for occasional use as a guest bedroom, like a den, family room, office etc. But, if the house didn't have a basement and didn't have any other space separated from the main living area, I would think the separate bedroom would be more valuable than the added bath/closet space Also, if 4 bedroom houses are rare in your area, that additional bedroom might be a very sought after feature.

Sounds like you are going to live in your home for many years ... make yourself happy! If it were me, I would opt for the larger bath and closet ... that's going to add value to your home.

It really depends on your local market and potential buyers when you sell.