How to use the home sale proceeds calculator
- 1 Enter the sale price and your mortgage payoff.
- 2 Enter agent commissions, closing costs and any seller credits or repairs.
- 3 Enter what you paid plus improvements and whether it was your main home.
- 4 Choose your filing status, enter your other income and read your net proceeds and any tax.
Worked example
A $450,000 sale with a $250,000 mortgage payoff, 5.5% commissions and 1.5% closing costs, on a home bought for $300,000. Selling costs are $31,500 (7%), so the amount realized is $418,500 and the net proceeds are $168,500. The gain is $118,500, fully covered by the $250,000 exclusion for a main home, so no federal tax is due.
Keeping more from your sale
- Negotiate commissions with your agent.
- Keep receipts for improvements: they raise your basis.
- Meet the 2-of-5-years test to use the exclusion.
- Get a payoff statement from your lender before closing.
Plan your next home with the Down Payment Calculator, check tax on a larger gain with the Capital Gains Tax Calculator, and see your equity with the Home Equity Calculator.
Features
Every selling cost
Commissions, closing costs, credits, repairs and the loan payoff.
Home sale exclusion
$250,000 single, $500,000 joint, when you meet the 2-of-5-years test.
Capital gains tax
Uses the 0%, 15% and 20% rates and 3.8% NIIT on any taxable gain.
When to use it
Selling to buy again
See the cash you can put down. Plan the next purchase with the Down Payment Calculator.
Downsizing in retirement
Add the proceeds to your savings in the Retirement Withdrawal Calculator.
Selling a rental
Rentals do not get the exclusion. Check the tax with the Capital Gains Tax Calculator.
Comparing with staying
Weigh selling against keeping the home with the Rent vs Buy Calculator.
Related Home and Auto tasks
Frequently asked questions
How do I calculate my net proceeds from a home sale?
Start with the sale price, subtract agent commissions, seller closing costs, any credits or repairs you agreed to, and the payoff of your mortgage and any home equity loans. What is left is your cash at closing, before tax.
How much are seller closing costs?
Usually 1% to 3% of the price, on top of agent commissions. They can include title insurance for the buyer, transfer taxes, attorney or escrow fees and prorated property tax.
How much is a real estate agent's commission?
Commissions are negotiable. Since rule changes in 2024, the seller's agent and the buyer's agent are often agreed separately; totals of 5% to 6% are still common.
Do I pay tax when I sell my house?
Often not. If it was your main home for at least two of the last five years, up to $250,000 of gain ($500,000 for married couples filing jointly) is excluded from income.
How is the capital gain on a home worked out?
The amount realized (price minus selling costs) minus your cost basis: what you paid, plus buying costs and the cost of improvements such as a new roof or an addition. Repairs and maintenance do not count.
What if my gain is more than the exclusion?
The excess is a long-term capital gain, taxed at 0%, 15% or 20% depending on your income, plus 3.8% net investment income tax at high incomes.
Do I have to buy another house to avoid tax?
No. That rule ended in 1997. The exclusion applies whether or not you buy again. A 1031 exchange applies only to investment property.
What if I lived there less than two years?
You may get a partial exclusion if you moved for work, health or another unforeseen reason. Otherwise the whole gain can be taxable.
When do I receive the money?
The title or escrow company pays the proceeds at closing, usually by wire transfer the same day or within a few business days.
Does this include state tax?
No. Federal tax only. Many states also tax capital gains on homes that do not qualify for the exclusion.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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