# What will I net from my home sale?

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.

- Page: https://www.acalculator.org/finance/home-sale-proceeds-calculator
- JSON spec: https://www.acalculator.org/finance/home-sale-proceeds-calculator.json
- Version: a37e5a0152fb

## Default answer

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.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| price | Sale price | The price the buyer pays for the home. |
| owed | Mortgage payoff | What you owe on the mortgage at closing, including any second mortgage or HELOC. |
| commission | Agent commission | The total commission you pay the agents, as a percent of the sale price. |
| closing | Other closing costs | Title, escrow, transfer tax, and other fees you pay, as a percent of the sale price. |
| credits | Credits and repairs for the buyer | Seller credits toward the buyer’s costs and repairs you agree to pay for. |
| other | Other costs | Other costs of the sale, such as staging, a home warranty, or prorated taxes you owe. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| net | Your net proceeds | The sale price minus the selling costs and the mortgage payoff. |
| commissionAmount | Agent commission | The commission rate × the sale price. |
| closingAmount | Other closing costs | The closing cost rate × the sale price. |
| costs | Total selling costs | Commission, closing costs, credits and repairs, and other costs. |
| costShare | Selling costs as a share of the price | Total selling costs as a percent of the sale price. |
| payoff | Mortgage payoff | The loans paid off at closing. |
| equity | Equity before selling costs | The sale price minus the mortgage payoff. |

## Method

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

## Assumptions

- 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.

## Worked examples

1. price = $450,000.00, owed = $250,000.00, commission = 5%, closing = 1.5%, credits = $0.00, other = $0.00 gives commissionAmount = $22,500.00, closingAmount = $6,750.00, costs = $29,250.00, net = $170,750.00, costShare = 6.5%. Source: IRS Publication 523: the amount realized is the selling price minus selling expenses.
2. price = $325,000.00, owed = $180,000.00, commission = 5.5%, closing = 2%, credits = $4,000.00, other = $1,500.00 gives commissionAmount = $17,875.00, closingAmount = $6,500.00, costs = $29,875.00, net = $115,125.00, equity = $145,000.00.
3. price = $300,000.00, owed = $290,000.00, commission = 5%, closing = 1%, credits = $0.00, other = $0.00 gives costs = $18,000.00, net = -$8,000.00.

## FAQ

### 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.

## Sources

- IRS Publication 523, Selling Your Home ($250,000 or $500,000 gain exclusion after 2 of 5 years). https://www.irs.gov/publications/p523
- IRS Topic 701, Sale of your home. https://www.irs.gov/taxtopics/tc701
- Consumer Financial Protection Bureau, What is a short sale? https://www.consumerfinance.gov/ask-cfpb/what-is-a-short-sale-en-290/