How to use the home sale net proceeds calculator
- Enter the expected sale price and your mortgage payoff, plus any other liens to clear at closing.
- Set the commission and the title, escrow and transfer costs as percents of the price. The defaults are examples, so replace them with figures from your agent or title company.
- Add repairs, home prep and seller credits, and any prorated property tax or HOA dues you will owe at closing.
- Read the net proceeds, the share of the price you keep and the sale price where you would break even.
Formula
Selling costs = price x commission % + price x closing % + repairs and credits + prorated charges
Net proceeds = price - selling costs - mortgage payoff - other liens
Break even price = (debts + repairs + prorated charges) / (1 - commission % - closing %)
All amounts are rounded to the cent. A negative net means cash is due at closing.
Worked example
A home sells for $450,000 with a $280,000 payoff. Commission at 5% is $22,500, title and transfer costs at 1.5% are $6,750 and repairs and credits are $3,000.
Selling costs total $32,250, so net proceeds are $450,000 - $32,250 - $280,000 = $137,750, about 30.6% of the price. The break even price is ($280,000 + $3,000) / (1 - 0.065) = $302,673.80.
Where the money goes
The biggest items are usually your mortgage payoff and agent commissions. Title insurance, escrow fees, transfer or recording taxes and prorated property tax follow. Which party pays what differs by state, county and contract, so use your listing agreement and an early estimate from a title company in place of the example percents.
What this does not include
Tax on your gain, any exclusion you may qualify for, moving costs, the cost of carrying two homes and concessions agreed after an inspection are not modeled. The capital gains calculator helps with the gain, and the moving cost calculator estimates the move. To plan a purchase with the proceeds, see the down payment calculator.
Get an accurate payoff
Your payoff includes interest through the closing date, and may include fees, so it differs from the balance on your statement. Request a written payoff statement from your servicer close to closing. Compare the result with closing costs when you plan your next home.
Assumptions and limits
- Commission and closing costs are example percents of the sale price. Both are negotiable or set by contract and local custom.
- The payoff and other liens are exact amounts you enter.
- Income tax on any gain, exclusions and prorations beyond the amount you enter are not modeled.
- The result is an estimate for planning, not a closing statement.
Frequently asked questions
How do I calculate net proceeds from selling a house?
Subtract your mortgage payoff, agent commissions, title and closing costs, repairs and prorated bills from the sale price. What is left is your estimated net proceeds.
How much are typical selling costs?
They vary widely by place and contract, so this tool uses editable example percents instead of a claim about a typical number. Ask your agent and a title company for a written estimate.
Do I owe tax on the money I get from selling?
You may owe tax on the gain, which is the sale price less your cost basis and selling costs, though you may qualify for an exclusion on a primary home. That is not modeled here. Ask a tax professional.
What is the break even sale price?
It is the price at which your proceeds are exactly zero after paying the debts and selling costs. Below it, you would need to bring cash to closing.