Home Sale Net Proceeds: How Much You'll Actually Walk Away With

Ask a seller what their house is worth and they'll quote the price they hope to get. Ask what they'll walk away with and most aren't sure — because the headline price and the cash that lands in your account are two very different numbers. Between them sits a stack of costs: the agent's commission, legal and closing fees, last-minute repairs, whatever's left on your mortgage, and sometimes a tax bill. Knowing your net proceeds before you list is the difference between planning your next move with confidence and getting an unwelcome surprise at completion.

The basic equation

Net proceeds — the cash you actually keep — follow a simple chain of subtractions:

Net proceeds = sale price − selling costs − mortgage payoff

Selling costs themselves break down into a few pieces, so the fuller picture is:

Net proceeds = sale price − agent commission − legal/closing costs − repairs − mortgage payoff

Everything hinges on those middle terms. On a typical sale they swallow somewhere between 6% and 10% of the price before the mortgage is even repaid — so on a 400,000 home, the costs alone can run to 25,000–40,000. Let's walk through each one.

Agent commission — usually the biggest cost

The estate agent or realtor's fee is normally the single largest line. It's charged as a percentage of the sale price, so it scales with the value of your home, and the percentage varies enormously by country (more on that below). Because it's a percentage, a small difference in the rate is real money: on a 400,000 sale, the gap between a 1.5% fee and a 5% fee is 14,000.

This is the one cost where shopping around and negotiating genuinely pays. Commission rates are not fixed by law anywhere — they're set by the market and by what you agree with your agent.

Legal and closing costs

On top of commission you'll pay for the legal mechanics of transferring ownership — conveyancing or attorney fees, title and settlement charges, deed registration, and various small disbursements. These are usually a few thousand at most, but they're easy to forget when you're focused on the headline price. Sellers sometimes also face their share of closing costs that buyers more commonly associate with purchasing.

Repairs and presentation

Many sales involve some spend to get the property ready or to satisfy the buyer: fixing issues flagged in a survey or inspection, a fresh coat of paint, staging, or a price-reducing credit negotiated after the offer. These aren't mandatory, but they're real, so it's worth folding a realistic figure into your estimate rather than pretending the house sells exactly as it stands.

The mortgage payoff

If you still owe money on the property, your outstanding mortgage balance is repaid directly from the sale proceeds at completion — the lender is paid before you see a penny. Crucially, your equity is not the same as your sale price: it's what's left after the loan is cleared. Someone selling a 400,000 home with a 250,000 mortgage has roughly 150,000 of gross equity, and their net proceeds come out of that, not the full 400,000.

Your sale price is the number on the listing. Your net proceeds are what's left after the agent, the lawyers, the repairs, and the bank have all been paid. Plan your next move around the second number, never the first.

One trap worth naming: if your costs plus mortgage payoff exceed the sale price, you're in negative equity and would need to bring cash to the table to complete. This is rare but possible if you bought near the top of the market with a small deposit, or if values have fallen. The calculator flags this clearly so it's never a shock.

A worked example

Suppose you sell for 400,000, with a 200,000 mortgage still outstanding:

• Sale price: 400,000
• Agent commission at 2%: −8,000
• Legal and closing costs: −2,000
• Repairs and presentation: −3,000
• Net before mortgage: 387,000
• Mortgage payoff: −200,000
• Net proceeds: 187,000

So a 400,000 sale puts 187,000 in your pocket — before any capital gains tax. Change the commission to 5% and the costs jump by 12,000, dropping your proceeds to 175,000. That single assumption is why it pays to model your own numbers rather than rely on a rule of thumb.

The cost that's easy to forget: capital gains tax

For many people selling their main home, there's no tax to pay — but the rules differ sharply by country, and they matter enormously if you're selling a second home, a rental, or an investment property. Here's how the four major systems treat a home sale.

United States

Agent commission is famously high — historically 5–6% split between the buyer's and seller's agents, though the 2024 NAR settlement is starting to loosen that. On tax, the Section 121 exclusion is generous: if the home was your primary residence for at least two of the last five years, you can exclude up to $250,000 of gain ($500,000 for married couples filing jointly) from capital gains tax. Gains above that, and sales of investment properties, are taxed at long-term capital-gains rates.

United Kingdom

Estate agent fees are comparatively low — typically 1–3% plus VAT — and you'll add a few hundred to a couple of thousand for conveyancing. The big tax advantage is Private Residence Relief: your main home is generally completely exempt from Capital Gains Tax. Second homes and buy-to-lets are not — gains there are taxed at 18% or 24% depending on your income band, and since 2020 the tax must be reported and paid within 60 days of completion.

Canada

Realtor commission usually runs 3–5%, and note that GST/HST is charged on the commission itself, not just on the fee. The principal residence exemption means no capital gains tax on the sale of your main home for the years you lived in it. For rentals and second properties, only 50% of the gain is included in taxable income (the inclusion rate), then taxed at your marginal rate.

Australia

Agent commission is the lowest of the four — typically 1.5–2.5%, plus a separate advertising/marketing budget that's often paid upfront. Your main residence is covered by the main residence exemption, so generally no CGT. Investment properties are taxed, but if you've held the asset for more than 12 months you get the 50% CGT discount, halving the taxable gain before it's added to your income.

How to get an accurate estimate

To pin down your real net proceeds, gather four numbers before you start:

• A realistic sale price — ideally from a couple of agent valuations or recent comparable sales, not the optimistic end.
• Your agent's commission rate — get this in writing, and check whether it includes tax (VAT/GST) and marketing.
• A current mortgage redemption figure — ask your lender for the exact payoff amount, including any early-repayment charge if you're still in a fixed deal.
• An honest allowance for legal costs and repairs — a few thousand is a sensible placeholder until you have quotes.

With those in hand, the arithmetic is quick — and seeing it laid out usually changes how people think about timing, pricing, and whether a particular offer actually clears what they need for their next purchase.

Why net proceeds drive your next move

The reason this number matters so much is that it's the deposit on whatever comes next. If you're trading up, your net proceeds plus a new mortgage set your buying budget. If you're downsizing, the proceeds minus your next purchase are the cash you free up. Either way, working backwards from a guessed sale price rather than real net proceeds is how chains collapse and budgets blow up.

• Don't confuse equity with proceeds. The costs come out of your equity, not out of thin air — budget for the full 6–10% before you commit to a purchase price on your next home.
• Negotiate the commission. It's the largest and most negotiable cost. Even half a percent saved is meaningful on a six-figure sale.
• Check the tax position early. If you're selling anything other than a long-held main home, find out whether CGT applies before you sell, not after — the bill can be substantial and, in the UK, the deadline is tight.

Putting it together

Selling a home is one of the largest financial transactions most people ever make, and yet the gap between the price and the payout routinely catches sellers off guard. The fix is simple: subtract every cost from the sale price before you celebrate. Agent commission, legal fees, repairs, your mortgage, and any capital gains tax all have a claim on the proceeds — and once you've accounted for them, the number that's left is the one you can actually plan around.

Run your own figures before you list. A few minutes spent modelling your costs and mortgage payoff turns a vague hope into a firm number — and a firm number is what lets you make your next move with confidence.