Home Sale Proceeds Calculator
Use this home sale proceeds calculator, also called a house sale calculator, to find out how much you will walk away with when you sell your house. Enter the sale price, your mortgage payoff and selling costs to see your net proceeds, what selling really costs and whether your profit is likely to be taxed.
Estimate only. Actual costs depend on your contract, local fees and taxes, and prorated property taxes or HOA dues at closing. The gain check assumes the home was your main home for 2 of the last 5 years.
What it costs to sell a house
Selling costs often add up to about 6% to 10% of the sale price. The main pieces are:
| Cost | Typical range | Notes |
|---|---|---|
| Real estate commissions | About 5% to 6% combined | Negotiable. Since 2024 rule changes, the buyer’s agent fee is agreed separately and sellers may choose whether to offer it. |
| Seller closing costs | About 1% to 3% | Title insurance, escrow or attorney fees, recording and transfer taxes |
| Concessions | Varies | Credits to the buyer for closing costs or repairs found at inspection |
| Prep and repairs | Varies | Painting, cleaning, staging and fixes before listing |
Here is what 5.5% commission and 2% closing costs look like at different prices, before paying off the mortgage:
| Sale price | Commission (5.5%) | Closing (2%) | Total costs | Left before mortgage |
|---|---|---|---|---|
| $300,000 | $16,500 | $6,000 | $22,500 | $277,500 |
| $400,000 | $22,000 | $8,000 | $30,000 | $370,000 |
| $500,000 | $27,500 | $10,000 | $37,500 | $462,500 |
| $750,000 | $41,250 | $15,000 | $56,250 | $693,750 |
How net proceeds are calculated
At closing, the escrow or title company collects the buyer’s money, pays off your mortgage and any liens, pays the agents and closing costs, and sends you the rest. Property taxes and HOA dues are usually prorated to the closing date, so the final number can move by a few hundred dollars either way.
Will you owe capital gains tax?
Most homeowners do not. Under the home sale exclusion, you can generally exclude up to $250,000 of gain, or $500,000 if married filing jointly, if you owned the home and lived in it as your main home for at least 2 of the 5 years before the sale.
- Your gain is roughly the sale price minus selling costs minus what you paid for the home and the cost of improvements such as a new roof or kitchen remodel. Routine repairs do not count.
- Gain above the exclusion, or gain on a home that does not qualify, is generally taxed as a capital gain.
- Rental or second homes follow different rules. See IRS Topic 701 or a tax professional.
Worked example: selling a $400,000 home
A married couple sells their home for $400,000. They owe $220,000 on the mortgage, pay 5.5% in commissions and 2% in closing costs, and give the buyer a $3,000 credit after inspection. They bought the home for $250,000 and spent $20,000 on a kitchen remodel.
- Commissions: 5.5% × $400,000$22,000
- Closing costs: 2% × $400,000$8,000
- Total cost to sell$33,000
- Net proceeds after the mortgage$147,000
- Gain: $400,000 − $30,000 − $270,000$100,000
- Taxable gain after the $500,000 exclusion$0
Selling costs take 8.25% of the price. If the couple plans to buy again, the home affordability calculator and mortgage calculator show what their proceeds could buy as a down payment.
Frequently asked questions
How do I calculate net proceeds from selling my house?
Start with the sale price, then subtract your mortgage payoff, real estate commissions, seller closing costs and any concessions or repairs. For a $400,000 sale with a $220,000 mortgage, 5.5% commission, 2% closing costs and $3,000 in concessions, the seller nets about $147,000.
How much does it cost to sell a house?
Selling costs often total about 6% to 10% of the sale price. Real estate commissions have commonly run around 5% to 6% combined, and seller closing costs such as title, escrow, transfer taxes and attorney fees often add 1% to 3%. Commissions are negotiable and vary by market.
Do I pay taxes when I sell my house?
Often not. If you owned and lived in the home as your main home for at least 2 of the 5 years before the sale, you can generally exclude up to $250,000 of gain from income, or $500,000 if married filing jointly. Gain above that may be taxed as a capital gain.
Is the mortgage paid off when I sell my house?
Yes. At closing, the title or escrow company uses the sale money to pay off your remaining mortgage balance and any other liens first. You receive what is left after the payoff and selling costs.
What is the difference between equity and net proceeds?
Equity is your home's value minus what you owe. Net proceeds are what you actually receive after selling, which is your equity minus commissions, closing costs and other selling expenses. Net proceeds are usually several percent of the sale price lower than equity.
This calculator is for educational purposes only and is not tax, legal or real estate advice. Costs vary by state, county and contract. For capital gains rules, see IRS Topic 701, Sale of Your Home, or consult a tax professional.