Seller Net Proceeds Calculator
See what you actually walk away with after costs and paying off the mortgage.
Details
Today's balance, not your original loan
= $25,000
Net proceeds
$217,000
Selling costs
6.6%
Equity before costs
$250,000
Gain since purchase
$150,000
Break-even price
$269,394
Kept from sale price
43.4%
This works out what you actually receive from a home sale after commission, closing costs and paying off your mortgage.
It lists each deduction separately, so you can see where the difference between the sale price and your cheque goes.
What a seller actually walks away with
Net proceeds are what lands in your account after a sale, and they are always well below the sale price. Between the two sit agent commission, closing costs, and paying off whatever remains on your mortgage.
Commission is the largest single line, historically around 5% to 6% of the price split between the two agents. Other seller costs, such as transfer taxes, title fees and any concessions to the buyer, commonly add another 1% to 3%.
The industry calls the itemised version a net sheet, and any agent will prepare one for you. Working it out yourself first means you can tell whether the price you are being advised to accept actually clears your mortgage.
The costs alone take $30,000, which is 7.5% of the price. A seller expecting $150,000 of equity to arrive as cash is $30,000 out.
What to enter
- Sale price
- The agreed price. If you are still deciding what to list at, run a pessimistic figure as well.
- Commission rate
- Total across both sides. Historically 5-6%, though it is now more openly negotiable than it used to be.
- Mortgage payoff
- The payoff figure from your lender, not your last statement balance. It includes interest to the closing date.
- Other closing costs
- Transfer taxes, title, attorney fees, prorated property tax and any repairs you agreed to. Roughly 1-3%.
- Seller concessions
- Money you agreed to put towards the buyer's costs. Common in slower markets and easy to forget in this calculation.
What this assumes
Costs vary considerably by state, particularly transfer taxes, which are large in some states and zero in others.
Capital gains tax is not included. Most primary-residence sellers are exempt, but not all.
How to calculate your net proceeds from a sale
Start at the sale price and subtract each deduction in turn. The order does not change the answer, but it makes the size of each one visible.
- commission
- Sale price × commission rate
- mortgage payoff
- The lender's figure including interest to closing
Take the commission off first. The largest deduction, and a percentage of the whole sale price. At 5.5% on $400,000 that is $22,000.
Add up the other closing costs. Transfer tax, title, attorney and prorated property tax. Budget 1-3% until you have real quotes.
Get the exact mortgage payoff. Ask your lender for a payoff quote. It is higher than your statement balance because it includes interest to the closing date.
Subtract concessions and agreed repairs. Anything negotiated after the inspection comes out of your side. It is real money and often overlooked.
See a worked example: why $150,000 of equity becomes $120,000 of cash
- Sale price
- $400,000
- Mortgage payoff
- $250,000
- Commission
- 5.5%
- Other costs
- 2%
Commission: $400,000 × 5.5% = $22,000.
Other closing costs: $400,000 × 2% = $8,000.
Total selling costs: $30,000.
Net proceeds: $400,000 − $30,000 − $250,000 = $120,000.
Your equity was $150,000. The selling costs took a fifth of it.
$120,000 net, not $150,000
Frequently asked questions
Commonly 6% to 10% of the sale price in total, with commission the largest part and other closing costs adding 1% to 3%.
On a $400,000 sale that is roughly $24,000 to $40,000. Transfer taxes drive most of the variation, since they are substantial in some states and nonexistent in others.
Not automatically. A 2024 settlement involving the National Association of Realtors changed how buyer-agent compensation is advertised and negotiated, and commission is now more openly discussed than it once was.
In practice many sales still land near historical levels, but the rate is negotiable and worth negotiating. Ask what the total is and how it splits before you sign a listing agreement.
Traditionally the seller paid both sides out of one commission. Since the 2024 rule change, buyer-agent compensation is negotiated more explicitly and may be paid by the buyer instead.
It still frequently ends up on the seller's side, because a buyer who must pay their own agent has less cash for the purchase. Establish which arrangement applies before you agree a price.
Usually not on a primary residence. US rules allow an exclusion of up to $250,000 of gain for a single filer and $500,000 for a married couple filing jointly, if you owned and lived in the home for at least two of the previous five years.
Investment properties get no such exclusion. If the gain is large or the property was a rental, check with a tax professional before you plan around the proceeds.
You bring cash to closing to cover the shortfall, or you negotiate a short sale with the lender, which requires their approval and damages your credit.
Running this calculation before listing is exactly how you find out. It is far better to know while you still have the choice not to sell.
Problems people actually run into
Assuming your equity is your cheque
A seller with $150,000 of equity plans a down payment around that figure, then receives $120,000. The $30,000 gap arrives late, often after an offer has been made on the next house.
Work out net proceeds before you list, not after. It is the number your next purchase actually depends on.
Forgetting the payoff is more than the balance
Your statement shows the balance as of the statement date. The payoff figure adds interest up to the closing date and can include a recording or processing fee.
The difference is usually modest, but on a tight sale it matters. Ask your lender for a written payoff quote once you have a closing date.
Results are estimates for general information only and are not professional financial, medical, or legal advice. Read our full disclaimer.
Last updated: September 4, 2026