How seller net proceeds are calculated
Estimated seller net proceeds start with the gross sale price, then subtract commissions, loan and lien payoffs, seller closing charges, transfer or recording taxes, concessions, prorations and other seller costs. Credits owed to the seller are added back.
Use a payoff quote, not just a loan balance
A mortgage payoff can be higher than the principal balance shown on a monthly statement because it may include accrued interest, payoff fees and other charges through the anticipated payoff date. For a closing estimate, use the lender's current payoff statement whenever possible.
What this calculator is useful for
Attorneys, closing staff, sellers and real estate professionals can use the worksheet to test sale-price scenarios, estimate cash available after closing and identify which deductions have the largest effect on seller proceeds.
Seller net proceeds FAQ
Are net proceeds the same as taxable gain?
No. This calculator estimates closing cash, not income-tax gain. Debt payoff changes the cash received at closing but tax basis and taxable gain are separate calculations.
Should I enter my mortgage balance or payoff amount?
Use a current payoff quote when available because it can include accrued interest and lender charges beyond the statement principal balance.
What if the result is negative?
A negative result means the entered deductions exceed the sale price and credits, so the seller may need additional funds or the inputs may need review.