How do I calculate the proceeds from selling my home?

Start with the sale price, then subtract: (1) your remaining mortgage payoff, (2) agent commissions (listing + buyer side, typically 2.5–3% each post-NAR), (3) state and local transfer taxes, (4) title and escrow fees, (5) prorated property taxes and HOA, and (6) any seller concessions. The remainder is your net proceeds at closing.

What is the typical closing cost percentage for sellers?

US sellers typically pay 8–10% of the sale price in total closing costs: roughly 5–6% in commissions and another 2–4% in transfer taxes, title insurance, escrow, and prorated items. Higher-tax states like New York and California fall toward the top of that range.

Do I owe taxes on the proceeds from my home sale?

Most primary-residence sellers owe no federal capital gains tax thanks to the IRS Section 121 exclusion ($250k single / $500k married). Investment properties and second homes don't qualify and may also trigger depreciation recapture.

Seller guide

How to calculate your home sale proceeds

Knowing what you'll actually walk away with at closing is the most important number in a home sale. This guide breaks down the exact formula behind a seller net sheet — the same math powering the free RealCalc home sale calculator.

The core formula

Every net sheet, no matter the state, follows the same shape:

Net proceeds = Sale price − Loan payoff − Selling costs

"Selling costs" is where most of the complexity lives. Below is every line you should expect to see on a US closing statement.

1. Start with the sale price

Use the agreed contract price — not the listing price. If you've accepted concessions (e.g. credit for repairs or closing costs), note them separately; you'll subtract them at the end.

2. Subtract your loan payoff

This is your current mortgage balance plus per-diem interest through the closing date — not just last month's statement. Call your lender for an official payoff quote within ~10 days of closing.

Loan payoff = Principal balance + Accrued interest + Any prepayment penalty

3. Subtract agent commissions

Post-NAR settlement (effective August 2024), listing and buyer-side commissions are negotiated separately. Common ranges in 2026:

Listing agent: 2.0–3.0%
Buyer's agent (if offered): 2.0–3.0%

Some sellers offer 0% to the buyer side and let the buyer negotiate it directly. Whatever you agree to, this is usually the single largest line on your net sheet.

4. Subtract state and local transfer taxes

Transfer taxes vary wildly by state and even by county. A few quick benchmarks:

Texas, Florida (seller side): minimal or none
California: ~0.11% county + city add-ons
New York: ~0.4% state + NYC add-ons (1–2.625%)

RealCalc applies the correct state rate automatically when you pick your state.

5. Subtract title, escrow, and other closing fees

Typically 0.5–1.5% of sale price combined:

Owner's title insurance (often seller-paid)
Escrow / settlement fee
Recording and document prep
HOA transfer / estoppel fee (if applicable)

6. Prorate property taxes and HOA

You owe property tax and HOA dues only through the closing date. The escrow officer calculates the daily proration automatically; expect a small debit if your county taxes are billed in arrears.

7. Subtract any seller concessions

If the buyer asked for a closing-cost credit or repair credit, subtract it last. These come straight off your bottom line at the closing table.

Worked example

$600,000 sale price · $310,000 loan payoff · 2.5% + 2.5% commissions · 1% title & escrow · $1,200 transfer tax · $2,400 prorations · $5,000 buyer credit.

$600,000 − $310,000 − $30,000 − $6,000 − $1,200 − $2,400 − $5,000 = $245,400 net

That's roughly 41% of the sale price — a normal outcome for a seller with meaningful equity in a mid-cost-of-living state.

Skip the spreadsheet

The free RealCalc seller net sheet calculator runs every line above with state-specific transfer taxes and 2026 commission defaults. Plug in your numbers and download a branded PDF in seconds.

Open the home sale calculator