Net Proceeds Calculator

Net Proceeds Calculator to estimate how much money you will get when you sell your home. The home sale net proceeds calculator includes options such as home sale price, real estate agent fees, mortgage balance payoff, other liens payoff, title, escrow, transfer tax, closing costs, and any other fees that are required.

Seller Closing Cost Calculator

If you are planning to sell your house, use this home sale calculator to estimate the total costs and proceeds that you will receive for selling your house. The seller closing cost calculator is able to calculate the real estate commission, title, escrow, transfer tax, and closing costs as a percentage of your home sale price, or as a dollar amount.

Many homeowners are surprised how much is deducted after they've sold their homes. The amount that they received could be thousands less than what they expected. A 4% real estate agent fee may not seem a lot, but it's actually $40,000 on a $1 million dollar property. Whether you are a homeowner looking to sell and upgrade your home, or a new investor who is looking to flip houses, make sure to plan ahead before you sell your home, and count all the expenses that you may have upon selling the house.

What are net proceeds?

Net proceeds are the final amount received by a seller after all the expenses and fees are deducted from the transaction of selling an asset. The home sale net proceeds is the amount received by the owner for selling his house after all the fees are subtracted, these fees include but are not limited to real estate agent commission, mortgage balance payoff, liens on the house, title, escrow, transfer tax, and closing costs.

How to calculate home sale proceeds?

To calculate the home sale proceeds, simply subtract all the costs associated with the home selling transaction from the home sale price. For example, if your home sale price is $300,000, with a real estate agent commission of 6%. Assume you have already paid off your mortgage and there are no other liens against your house. The costs of the title, escrow, transfer tax are estimated to be about 1% of your home value with closing costs of 2% and other fees of $1000. Following is how you would calculate the home sale proceeds.

• Home Sale Price = $300,000
• Real Estate Agent Commission = 6% of $300,000 or $18,000
• Title, Escrow, Transfer Tax = 1% of $300,000 or $3,000
• Closing Costs = 2% of $300,000 or $6,000.
• Other Fees = $1,000

Home Sale Proceeds = $300,000 - $18,000 - $3,000 - $6,000 - $1,000 = $272,000. Hence, the net home sale proceeds a homeowner expected to receive from this transaction is $272,000 before tax.

Capital gains tax on a home sale

After you calculate the home sale proceeds, there is one final factor that you need to know which may or may not be an effect for you, which is the tax on capital gains. If you bought the house for $200,000, spent $50,000 on renovation throughout the years that you lived in the house, and sold it for $500,000, you are expected to pay tax on the $250,000 that you gained. Capital Gains = $500,000 - $200,000 - $50,000 = $250,000 However, if the house is your primary residence and you are married, you are qualified for a lifetime exclusion of $500,000 on capital gain taxes. For singles, the limit is $250,000.

The definition of primary residence is that you have to live in the house for 2 years out of the last 5 years before the house was sold. If your home was a primary residency, then you don't have to pay any capital gain tax after you sold the house. The tax laws for primary residence change from time to time, you will have to consult your tax advisor to get all the details and updates of the latest law before you plan to sell your home to avoid any surprises down the road.