acalculator

What will I net from my home sale?

See how much cash you walk away with when you sell your home, after the commission, closing costs, and the mortgage payoff.

Your numbers

Commissions are negotiable. The default is an example.
They vary by state. The default is an example.
More options
Your net proceeds
$170,750.00

Selling for $450,000.00 with $250,000.00 owed, you net about $170,750.00 after $29,250.00 of selling costs.

Agent commission
$22,500.00
Other closing costs
$6,750.00
Total selling costs
$29,250.00
Selling costs as a share of the price
6.5%
Mortgage payoff
$250,000.00
Equity before selling costs
$200,000.00

Your net proceeds: $170,750.00. Selling for $450,000.00 with $250,000.00 owed, you net about $170,750.00 after $29,250.00 of selling costs.

Where does the sale price go?

The results are estimates for information only. They are not financial, tax, or legal advice. Check the numbers with your lender or a qualified professional before you decide. Terms of use

How to calculate

Computes the cash a seller nets from a home sale after the agents’ commission, closing costs, credits to the buyer, other costs, and the mortgage payoff.

Example with the default inputs (Sale price $450,000.00, Mortgage payoff $250,000.00, Agent commission 5%, Other closing costs 1.5%, Credits and repairs for the buyer $0.00, Other costs $0.00): Selling for $450,000.00 with $250,000.00 owed, you net about $170,750.00 after $29,250.00 of selling costs.

Method: net proceeds = price − price × (commission + closing costs) ÷ 100 − credits − other costs − mortgage payoff.

  • Commission and closing cost rates are yours to set; the defaults are examples, not market rates.
  • The mortgage payoff is what you owe at closing; any interest to the payoff day and payoff fees go in it.
  • Taxes on the gain are not included; many owners owe none because of the home sale exclusion.

Machine-readable copies: Markdown, JSON.

Worked examples

Each example is checked against the calculator on every build.

  1. Sale price $450,000.00, Mortgage payoff $250,000.00, Agent commission 5%, Other closing costs 1.5%, Credits and repairs for the buyer $0.00, Other costs $0.00 gives Agent commission $22,500.00, Other closing costs $6,750.00, Total selling costs $29,250.00, Your net proceeds $170,750.00, Selling costs as a share of the price 6.5%.Source: IRS Publication 523: the amount realized is the selling price minus selling expenses
  2. Sale price $325,000.00, Mortgage payoff $180,000.00, Agent commission 5.5%, Other closing costs 2%, Credits and repairs for the buyer $4,000.00, Other costs $1,500.00 gives Agent commission $17,875.00, Other closing costs $6,500.00, Total selling costs $29,875.00, Your net proceeds $115,125.00, Equity before selling costs $145,000.00.
  3. Sale price $300,000.00, Mortgage payoff $290,000.00, Agent commission 5%, Other closing costs 1%, Credits and repairs for the buyer $0.00, Other costs $0.00 gives Total selling costs $18,000.00, Your net proceeds -$8,000.00.

How it works

Write V for the sale price, M for the mortgage payoff, c for the commission rate in percent, k for the other closing costs in percent, R for the credits and repairs for the buyer, and O for the other costs.

  1. Commission = V × c ÷ 100.
  2. Other closing costs = V × k ÷ 100.
  3. Total selling costs = commission + other closing costs + R + O. As a share of the price: total ÷ V × 100.
  4. Equity before selling costs = V − M.
  5. Net proceeds = V − total selling costs − M. A negative number is the cash you must bring to closing.

Assumptions

  • The commission and closing cost rates are yours to set; the defaults are examples, not market rates. Seller costs vary by state and by contract.
  • The mortgage payoff is the amount on the lender's payoff statement: the balance plus interest to the payoff day and any fees.
  • Taxes on the gain are not included. Many owners owe none because of the home sale exclusion in IRS Publication 523.
  • Moving costs and a new home's costs are not included.

Worked examples by hand

A $450,000 sale with $250,000 owed, 5% commission, and 1.5% other closing costs. Commission = 450,000 × 0.05 = $22,500. Closing costs = 450,000 × 0.015 = $6,750. Total selling costs = $29,250, which is 6.5% of the price. Net proceeds = 450,000 − 29,250 − 250,000 = $170,750.

A $325,000 sale with $180,000 owed, 5.5% commission, 2% closing costs, $4,000 of credits, and $1,500 of other costs. Commission = $17,875, closing costs = $6,500, so total selling costs = 17,875 + 6,500 + 4,000 + 1,500 = $29,875. Equity before costs is 325,000 − 180,000 = $145,000, and the net is 145,000 − 29,875 = $115,125.

A $300,000 sale with $290,000 owed, 5% commission, and 1% closing costs. Selling costs = 15,000 + 3,000 = $18,000, so the net is 300,000 − 18,000 − 290,000 = −$8,000: you bring $8,000 to closing.

Other questions people ask

How do I calculate net proceeds from a home sale?

Start with the sale price and subtract the agent commission, your closing costs, any credits or repairs for the buyer, other costs, and the mortgage payoff. A $450,000 sale with 5% commission, 1.5% closing costs, and $250,000 owed nets 450,000 − 22,500 − 6,750 − 250,000 = $170,750.

How much is the real estate commission?

Commissions are negotiable and differ by market and by agreement. Enter the total you agree to pay, including any amount you offer toward the buyer's agent. The default here is only an example.

What closing costs does a seller pay?

Common seller costs include the owner's title insurance in many areas, escrow or settlement fees, transfer taxes where the seller pays them, recording fees, and prorated property taxes. They vary a lot by state, so use your title company's estimate.

Do I pay tax on the profit from selling my home?

Often not. If you owned and lived in the home for at least 2 of the 5 years before the sale, you can exclude up to $250,000 of gain from income, or $500,000 for most married couples filing jointly (IRS Publication 523). The gain is the price minus selling costs minus what you paid plus improvements, not the net proceeds.

What if I owe more than the home sells for?

Then the net proceeds are negative, and you need to bring cash to closing to pay off the loan, or ask the lender to agree to a short sale. The page shows the shortfall as a negative number.

Why is the net lower than my equity?

Equity is the price minus what you owe. Selling costs come out of it, so the cash you receive is the equity minus the commission, closing costs, credits, and other costs.