What Is the Home Sale Net Proceeds Calculator?
When you sell a house, the price a buyer pays is not the money you keep. This calculator estimates your net proceeds — the cash you actually walk away with at closing — by subtracting your remaining mortgage balance, the real estate agent commission, and other closing costs from the agreed sale price. It is useful for planning your next purchase, deciding on a listing price, or simply understanding the bottom line of a sale.
How to Use It
Enter the expected sale price, your current mortgage payoff amount, the agent commission rate (typically 5–6% in the US, split between the listing and buyer agents), and any other closing costs such as title fees, transfer taxes, escrow, and seller concessions. The calculator computes the commission as a dollar amount, totals all deductions, and shows your estimated net cash at closing.
The Formula Explained
The math is straightforward: $$\text{Net} = \text{Sale Price} - \text{Mortgage Payoff} - \text{Commission} - \text{Closing Costs}$$ where \(\text{Commission} = \text{Sale Price} \times \frac{\text{Rate}}{100}\). A negative result means the costs and payoff exceed the sale price, indicating you may need to bring cash to closing.
Worked Example
Suppose you sell for $400,000 with a $180,000 mortgage payoff, a 6% commission, and $5,000 in other closing costs. Commission \(= \$400{,}000 \times 6\% = \$24{,}000\). Total deductions \(= \$180{,}000 + \$24{,}000 + \$5{,}000 = \$209{,}000\). Net proceeds $$\$400{,}000 - \$209{,}000 = \mathbf{\$191{,}000}$$
FAQ
Does this include capital gains tax? No. This estimates cash at closing only. Capital gains tax (if any) is a separate calculation based on your cost basis and exclusions.
What goes into "other closing costs"? Title insurance, escrow or attorney fees, transfer/recording taxes, prorated property taxes, HOA fees, and any seller concessions or repair credits.
Is the commission negotiable? Yes. Commission rates are negotiable and vary by market; enter whatever rate applies to your situation.
