What This Calculator Does

This calculator shows what a seller actually receives at closing: the sale price minus the mortgage payoff, commission, title insurance, escrow fees, transfer taxes, recording, and any other deductions. It is the exit-side number every investor should know before listing.

Who It's For

It is for investors planning an exit, flippers modeling the resale, agents preparing seller net sheets, and anyone who wants to know what a sale will produce before committing to it.

What Each Input Means

  • Sale price: the contract price or your expected sale price.
  • Mortgage payoff: the amount needed to pay off the current loan, including any prepayment penalty if applicable.
  • Commission: the real estate commission as a percentage of the sale price.
  • Title insurance: the seller's share of title insurance, typically the owner's policy.
  • Escrow / settlement, transfer taxes, recording: the closing costs that vary by location and contract.
  • Other deductions: credits, prorations, concessions, or anything else subtracted at closing.

How the Calculation Works

Net proceeds = sale price minus commission, title insurance, escrow, transfer taxes, recording, other deductions, and the mortgage payoff. Every deduction reduces what the seller receives.

What the Output Means

The result is the estimated cash the seller walks away with before income taxes. Compare it against the total cost of the deal to confirm the profit, and use it as the floor for your negotiation. A sale price that does not produce enough net proceeds to meet your target is a deal to rethink.

Common Questions

  • Who pays the owner's title policy on a sale? It varies by local custom and contract negotiation. In many areas the seller pays for the owner's policy; the contract sets the allocation.
  • Are prorations included? Only through the Other Deductions field. Property tax and HOA prorations are calculated at closing and vary by date and location.
  • Does this include capital gains tax? No. The result is pre-tax proceeds. Tax on the gain depends on your basis and holding period; model it with a tax professional.

Limitations

The result depends entirely on the numbers you enter. Closing costs, transfer taxes, and prorations vary by state, county, and contract. The calculator does not model income taxes, and the mortgage payoff should be confirmed with the lender.

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