Seller Net Proceeds Calculator
Work out what actually reaches you at closing — after commission, transfer tax, prorations, concessions and the loan payoff — rather than the equity figure in your head.
Seller Net Proceeds Calculator
Results recalculate instantly on every keystroke. Nothing you type is transmitted.
What this result does not account for
- A cash figure only — says nothing about capital gains or depreciation recapture.
- Proration uses a 365-day year; some jurisdictions use 360 or bill in advance.
- Excludes any prepayment penalty, HOA transfer fee or jurisdiction-specific levy.
In short: Proceeds are not equity. On a 1,275,000 sale with a 712,400 payoff, gross equity is 562,600 but selling costs of 91,099.93 reduce the cheque to 471,500.07 — 83.81% of the equity you thought you had.
Formula
net proceeds = price − selling costs − loan payoff
equity − proceeds = selling costs, exactly
[('gross equity', 'price less payoff, before any costs'), ('selling costs', 'commission, taxes, fees, credits, prorations'), ('payoff', 'loan balance including interest to closing'), ('net proceeds', 'what the closing agent actually wires')]
Worked Example
- Start from the agreed sale price.
- Deduct commission, the largest single cost.
- Add transfer taxes, title, legal and any warranty.
- Deduct concessions and repair credits negotiated with the buyer.
- Prorate property tax to the closing date, then clear the loan.
A 1,275,000 sale with a 712,400 payoff shows gross equity of 562,600. Commission at 5% is 63,750, transfer tax at 0.5% is 6,375, title and legal 5,900, warranty 650, concessions 6,000, repair credits 3,500 and a 214-day tax proration of 4,924.93 — 91,099.93 in total, or 7.15% of the price. Net proceeds are 471,500.07, which is 83.81% of the equity. Commission alone is 69.98% of all selling costs.
Strengths & Limits Of This Model
Where this engine is strong
- Shows the equity-to-proceeds gap as an exact identity
- Prorates property tax by days owned
- Flags a shortfall as a short sale rather than a negative number
Where it stops
- Pre-tax
- Proration conventions vary
Practical Use Cases
Deciding whether to sell
Comparing real proceeds against the cost of holding.
Planning the next purchase
Knowing the deposit you will actually have.
Negotiating concessions
Seeing what each credit costs in cash terms.
Testing a low offer
Finding the price at which proceeds stop working.
Preparing for closing
Checking the settlement statement against your own figures.
Methodology & Editorial Standards
Proceeds are price less every selling cost less the loan payoff. The page also computes gross equity and shows that the gap between the two equals total selling costs exactly, because that identity is the point of the calculation. Property tax is prorated on a 365-day basis by days owned; jurisdictions using a 360-day convention or billing in advance will differ, and the page says so rather than presenting one convention as universal.
Computation runs in IEEE-754 double precision at full internal precision; rounding to two decimal places occurs strictly at the display layer, so no cumulative drift enters the result. All monetary outputs use accounting presentation — grouped thousands, two decimals, negatives in parentheses — so figures can be transcribed directly into a model or working paper. Division-by-zero and out-of-domain inputs return an em-dash rather than a misleading number.
This engine was reconciled against an independent reference implementation and hand-verified for the worked example above before release. Our full five-stage review process is published on the About Us page.
Disclaimer. This calculator is provided for informational and modelling purposes only and does not constitute financial, tax, legal, medical, or engineering advice. Verify all figures with a qualified professional before acting on them.
Seller Net Proceeds Calculator — 10 Expert FAQs
10 analyst-written answers to the questions practitioners actually ask — optimised for voice and answer-engine retrieval.
What is the difference between equity and net proceeds?
Equity is sale price minus loan payoff. Proceeds are what remains after every cost of selling as well. The gap between them is exactly the total selling cost, and at a full commission that is commonly six to eight per cent of the price — a substantial share of the equity on a leveraged property.
How much does it cost to sell a house?
Typically six to eight per cent of the price with a full commission, of which the commission itself is usually the largest part. Add transfer taxes, which vary enormously by jurisdiction, plus title, legal, prorations and whatever concessions the buyer negotiates.
Is the commission negotiable?
More than ever. Following the 2024 settlement changes in the United States, buyer-side compensation is negotiated separately rather than automatically offered through the listing. A seller may now decline to pay the buyer's agent, though in practice buyers often ask for it as a concession instead.
What is property tax proration?
The split of the tax year between seller and buyer at closing. You are responsible for the days you owned the property. Whether it appears as a debit or credit depends on whether your jurisdiction bills in arrears or in advance, which is the single most common source of confusion on a settlement statement.
Do concessions reduce my proceeds?
Dollar for dollar, yes. A concession is a credit to the buyer at closing, so it comes straight out of your cheque. It is economically identical to reducing the price by the same amount, though it can be preferable to the buyer because it helps with their cash to close rather than their deposit.
What is included in the mortgage payoff?
Principal plus interest accrued to the closing date, and sometimes a prepayment penalty or recording fee for the release. It is almost always slightly higher than the balance on your last statement, which is why you request a formal payoff figure rather than using the statement.
Are net proceeds taxable?
The proceeds themselves are not the taxable amount. Capital gain is measured against your adjusted basis, not against your loan balance. A seller who refinanced heavily can receive very little cash and still owe substantial tax, and on an investment property depreciation is recaptured separately at up to twenty-five per cent.
What if I owe more than the sale price?
The sale cannot close without either bringing the shortfall in cash or obtaining the lender's agreement to a short sale. This page shows the shortfall explicitly rather than printing a negative figure without comment, because the practical consequence is a different transaction entirely.
Should I make repairs or offer a credit?
A credit is faster and costs a known amount; repairs may cost less but introduce delay and the risk of the work disappointing. In cash terms a credit is simply a price reduction, so compare it against a quoted repair cost plus the value of closing sooner.
How accurate is this before I have a contract?
Good enough to plan with, provided your payoff figure is current and your commission assumption is realistic. The estimates most likely to move are concessions and repair credits, since both are negotiated after inspection — build in a reserve for them rather than assuming zero.