How Much You'll Actually Walk Away With (Net Proceeds)
What it is
Net proceeds are the actual dollars you walk away with after selling your home — not the sale price. The sale price is what a buyer agrees to pay; net proceeds are what's left once selling costs and your remaining mortgage payoff are subtracted. This is usually the number that matters most when you're deciding whether a sale makes sense, or how much you can put toward your next home.
What you'll walk away with
Estimate only. Selling costs (agent commissions, title/escrow, transfer taxes, concessions) commonly run about 6–12% of the sale price and vary by market and negotiation. Confirm your payoff amount with your lender.
How to calculate it
The formula is stable and simple:
Net proceeds = Sale price − Selling costs − Remaining mortgage payoff
- Sale price — the agreed contract price with the buyer.
- Selling costs — the transaction expenses of selling. These commonly run about 8–10% of the sale price and include agent commissions, title/escrow fees (the neutral third party that handles the closing), transfer taxes (a tax some areas charge when the home changes hands), and any concessions (credits you give the buyer) or repairs you agree to.
- Remaining mortgage payoff — the balance you still owe your lender, including any accrued interest and payoff fees. This is the payoff amount, which can differ slightly from your last statement balance.
Note that net proceeds are separate from any tax you might owe on the gain. Most primary-residence sellers owe no tax because of the capital gains exclusion, but proceeds and taxable gain are two different calculations.
The factors that move the number
Three levers change your net proceeds:
- Sale price — a higher price lifts proceeds, but only after costs and payoff are covered.
- Selling costs — commission structure, local transfer taxes, and how many concessions or repairs a buyer negotiates all shift the middle term. In a strong market you may give fewer concessions; in a slow one, more.
- Mortgage payoff — the more principal you've paid down, the more equity (your home's value minus what you still owe) converts to cash. Early in a loan, a large payoff can eat most of the price.
🧮 Worked example
For example, suppose a home sells for $500,000:
- Selling costs at roughly 9% of the sale price → about $45,000
- Remaining mortgage payoff → $280,000
Net proceeds = $500,000 − $45,000 − $280,000 = about $175,000
These are round, hypothetical numbers meant only to show the math. Your own selling-cost percentage and payoff will differ, so the result will too.
Net proceeds tell you what a sale would actually put in your pocket, which is more useful than the sale price alone when planning a move or a next purchase. Run the formula with your real payoff figure and a realistic cost estimate to see where you stand — and remember that proceeds and any potential tax on the gain are separate questions.