Calculate the net proceeds from selling your property after settling your mortgage.
Estimated Net Proceeds
$0.00
Understanding the Mortgage Sale Calculator
When you decide to sell a property that still has an outstanding mortgage, it's crucial to understand how much money you will actually walk away with after all expenses are paid. The Mortgage Sale Calculator helps you estimate these net proceeds. It takes into account the selling price of your property and deducts all associated costs, including the outstanding mortgage balance, agent commissions, closing costs, and any other miscellaneous expenses.
How the Calculation Works:
The calculator follows a straightforward formula to determine your net proceeds:
Net Proceeds = Property Sale Price – Remaining Mortgage Balance – Total Agent Commission – Total Closing Costs – Other Estimated Costs
Property Sale Price: This is the agreed-upon price at which your property will be sold.
Remaining Mortgage Balance: This is the exact amount you still owe to your mortgage lender. This amount will be paid off directly from the sale proceeds.
Total Agent Commission: Real estate agents typically charge a commission fee, usually a percentage of the sale price. For example, a 5% commission on a $500,000 sale would be $25,000 (0.05 * $500,000).
Total Closing Costs: These are various fees associated with finalizing the sale of a property. They can include appraisal fees, title insurance, escrow fees, legal fees, transfer taxes, and more. These are often estimated as a percentage of the sale price.
Other Estimated Costs: This category is for any additional expenses you anticipate, such as minor repairs needed for the sale, staging costs, or moving expenses.
Why Use This Calculator?
Financial Planning: Accurately estimate the cash you'll receive to plan for your next purchase or investment.
Negotiation Power: Understand your bottom line, which can be helpful when negotiating the sale price or deciding on commission rates.
Avoid Surprises: Foresee potential shortfalls or understand what a specific sale price means in terms of your final payout.
Informed Decisions: Make better decisions about whether to sell now or wait, considering the current market conditions and your financial obligations.
By inputting realistic figures for each field, you can gain a clear picture of your financial outcome from selling your mortgaged property.
function calculateMortgageSale() {
var salePrice = parseFloat(document.getElementById("salePrice").value);
var remainingMortgage = parseFloat(document.getElementById("remainingMortgage").value);
var closingCostsPercentage = parseFloat(document.getElementById("closingCostsPercentage").value);
var agentCommissionPercentage = parseFloat(document.getElementById("agentCommissionPercentage").value);
var otherCosts = parseFloat(document.getElementById("otherCosts").value);
var resultValue = document.getElementById("result-value");
var errorMessage = "";
if (isNaN(salePrice) || salePrice <= 0) {
errorMessage += "Please enter a valid Property Sale Price.\n";
}
if (isNaN(remainingMortgage) || remainingMortgage < 0) {
errorMessage += "Please enter a valid Remaining Mortgage Balance.\n";
}
if (isNaN(closingCostsPercentage) || closingCostsPercentage < 0) {
errorMessage += "Please enter a valid Estimated Closing Costs percentage.\n";
}
if (isNaN(agentCommissionPercentage) || agentCommissionPercentage < 0) {
errorMessage += "Please enter a valid Agent Commission percentage.\n";
}
if (isNaN(otherCosts) || otherCosts < 0) {
errorMessage += "Please enter a valid amount for Other Estimated Costs.\n";
}
if (errorMessage !== "") {
resultValue.textContent = "Error";
alert(errorMessage);
return;
}
var totalAgentCommission = (salePrice * agentCommissionPercentage) / 100;
var totalClosingCosts = (salePrice * closingCostsPercentage) / 100;
var netProceeds = salePrice – remainingMortgage – totalAgentCommission – totalClosingCosts – otherCosts;
// Format the result to two decimal places and add a currency symbol
resultValue.textContent = "$" + netProceeds.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,');
// Ensure net proceeds is not negative in display, though calculation can be negative
if (netProceeds < 0) {
resultValue.style.color = "#dc3545"; // Red for negative outcome
} else {
resultValue.style.color = "#28a745"; // Green for positive outcome
}
}