How to Use the Home Sale Calculator
Selling a home involves more than just picking a listing price. Our home sale calculator helps you estimate the actual cash you will walk away with after all debts, commissions, and fees are settled. To get an accurate result, you will need several pieces of financial information related to your property.
- Sale Price
- The total amount you expect the buyer to pay for the property. This is the gross revenue before any deductions.
- Agent Commission
- Typically 5% to 6% of the sale price, which is split between the buyer's agent and the seller's agent.
- Mortgage Payoff
- The remaining principal balance on your current loan, plus any accrued interest or prepayment penalties.
- Closing Costs
- Includes title insurance, transfer taxes, recording fees, and attorney fees. Usually ranges from 1% to 3% of the sale price.
The Net Proceeds Formula
To calculate your net proceeds, we subtract all liabilities and transaction costs from the final sales price. The home sale calculator uses the following mathematical expression:
Net Proceeds = Sale Price – (Sale Price × Commission %) – Mortgage Balance – Closing Fees – Repair Costs
- Gross Sale: The starting point of the calculation.
- Variable Costs: Fees like commissions that scale with the home price.
- Fixed Costs: Specific dollar amounts like staging fees or agreed-upon repair credits.
- Debt Satisfaction: The removal of any liens or mortgages against the property.
Calculation Example
Scenario: You are selling your suburban home for $400,000. You still owe $250,000 on your mortgage. You have agreed to a 6% commission and expect $4,000 in miscellaneous closing costs.
Step-by-step solution:
- Sale Price: $400,000
- Commission: $400,000 × 0.06 = $24,000
- Mortgage Payoff: $250,000
- Closing Costs: $4,000
- Calculation: $400,000 – $24,000 – $250,000 – $4,000
- Result: $122,000 Net Proceeds
Common Questions
Are property taxes included in this calculator?
In many cases, property taxes are prorated at closing. If you have already paid for the year, you might get a credit. If you are behind, you will owe a portion. For the most accurate result with our home sale calculator, add your estimated tax liability to the "Closing Costs/Fees" field.
How can I reduce my selling costs?
The largest expense is usually the commission. You can negotiate the percentage with your listing agent or look for "flat-fee" MLS listing services. Additionally, doing minor repairs yourself instead of offering buyer credits can keep more money in your pocket.
Does this calculate capital gains tax?
No, this tool focuses on cash flow at the closing table. Capital gains tax depends on your income level, how long you lived in the home (primary residence exclusion), and your original purchase price. Consult a tax professional for post-sale tax implications.