Home Sale Calculator
Calculate net cash from selling your home after all costs: commission, closing fees, mortgage payoff, transfer tax, and repairs.
Reviewed & updated for 2026 by Rakesh Choudhary, PhD · How we calculate
The full cost stack of selling a home
Selling a home costs 7-10% of the sale price after all fees are tallied. On a $500,000 sale, that's $35,000-$50,000 disappearing before you ever see net proceeds. Sellers regularly underestimate this, assuming "I'll sell for $500K and get $500K minus the mortgage", and end up disappointed at closing.
The major cost categories: Agent commission (typically 5-6% pre-2024, more negotiable since the 2024 NAR settlement), $25,000-$30,000 on a $500K sale. Title and escrow fees 0.5-1%, $2,500-$5,000. Transfer tax varies widely by state and city: 0% in Texas and most states; 0.5-1.5% in California, Florida, Illinois; 1.4-2.075% in NYC; about 0.5% on average, $2,500. Buyer concessions (closing cost credit, repair credit), increasingly common in slower markets, $3,000-15,000+ depending. Prepaid items (prorated property tax, HOA fees through closing). Home warranty if you offer one ($400-800). Attorney in states that require one (NY, NJ, IL, others), $1,000-3,000.
Pre-sale costs to add: home inspection ($400-700), staging ($1,000-3,000), professional photography ($300-700), minor repairs and touch-ups ($500-5,000), deep cleaning ($300-500). These typically aren't itemized at closing but they're real cash outflows that reduce your true net.
The capital gains exclusion that saves $50,000+ for most sellers
IRC Section 121 exempts up to $250,000 of capital gain ($500,000 for married filing jointly) on the sale of a primary residence. To qualify, you must have owned the home AND used it as your primary residence for at least 2 of the 5 years immediately before the sale. The 2 years don't have to be continuous.
Example: A couple bought a home in 2010 for $300,000. They sell in 2026 for $700,000. Gain = $400,000. Selling costs: $50,000 (reduce gain to $350,000). Capital improvements over 16 years: $40,000 (reduce basis, lower gain to $310,000). Since $310,000 is under the $500,000 MFJ exclusion, $0 federal capital gains tax owed. Without the exclusion, this $310,000 gain at 15% long-term capital gains plus 3.8% NIIT would have cost $58,280 in federal tax.
Strategies for high-gain sellers: track every capital improvement (kitchen remodel, addition, new roof, HVAC) to increase basis and reduce gain; time the sale to keep total income below the NIIT threshold ($200K/$250K); consider 1031 exchange for investment properties (deferral, not exclusion); for very high gain, consider gifting partial interest to children before sale.
Commission negotiation post-NAR settlement
The August 2024 National Association of Realtors settlement fundamentally changed how commissions work. Pre-settlement: listing agreements typically specified total commission (5-6%) split with the buyer's agent. Post-settlement: buyer's agent compensation is no longer automatically published in MLS, and buyers must sign agency agreements specifying their agent's fee. Sellers can choose whether to offer buyer's agent compensation, and how much.
In practice, this opens negotiation possibilities. Common new structures: list agent at 2.5% + offer 2-2.5% to buyer's agent (still totaling 4.5-5%); list agent flat fee ($2,500-5,000) + offer 2.5-3% to buyer's agent; full FSBO with 1.5-2% offered to a cooperating buyer's agent; or use a discount broker (Redfin, Houwzer) at 1-1.5%.
The actual saving depends on negotiation and market. In hot markets where homes sell quickly, sellers have leverage to negotiate lower commissions. In slow markets, full-service traditional brokerage can be worth the higher cost. Always compare full proceeds across offers, not just sale prices, a higher offer with bigger concessions might net less than a lower offer with cleaner terms.
FAQs
How is home sale net calculated?
Net proceeds = Sale price − Real estate commission (5-6%) − Closing costs (1-3%) − Mortgage payoff − Repairs/credits − Transfer tax. The exact percentages vary, but commission is typically the biggest expense (5-6% in most states).
What does it cost to sell a home?
Total seller costs typically 7-10% of sale price. Breakdown: Agent commission 5-6%, title/escrow fees 0.5-1%, transfer tax 0.5-2% (varies by state), home warranty 0.2-0.5%, prorated property tax, attorney fees (some states), staging/repair credits. On a $400K home: roughly $30,000-$40,000 in selling costs.
Do I pay capital gains tax on home sale?
Possibly. Section 121 of the tax code excludes up to $250,000 of gain ($500,000 married filing jointly) if you owned AND used the home as primary residence for 2 of the past 5 years. Gain ABOVE the exclusion is long-term capital gains (0/15/20%). Investment properties or vacation homes don't qualify for the exclusion.
Is real estate commission negotiable?
Yes. After the 2024 NAR settlement, commissions are explicitly negotiable. Full-service traditional: 5-6%. Discount brokers (Redfin, Houwzer): 1-2.5%. Flat-fee MLS listing: $300-$1,500. For-sale-by-owner (FSBO): 0% commission but you handle everything yourself. Average savings on negotiating: 0.5-1.5%.
How can I increase my net proceeds?
(1) Negotiate lower commission. (2) Avoid major repairs unless return is clear. (3) Pre-list home inspection (catches issues before buyer's offer). (4) Time the sale for market peaks (spring/early summer typically best). (5) Compare offers, accept higher net (not just higher price) since fees vary. (6) Sell during the right tax year (over $250K gain? plan around capital gains exclusion timing).