ReckonBoxWhat you actually walk away with
Your net proceeds are the cash left after the sale pays off your mortgage, the agent commissions, and the closing costs. That is the number sellers mean by "walk-away," and it is only half the picture, because it says nothing about tax.
On a $500,000 sale with a $250,000 mortgage payoff, 5% in total commission, and 1% in other costs, the net proceeds are $220,000. Every seller net sheet computes that figure. Not one of the ones we tore down computes the tax on the profit underneath it.
Net proceeds and profit are different numbers
Your net proceeds are the cash at closing; your gain is the profit over what you paid, and the tax is based on the gain, not the cash. People conflate the two constantly, and most calculators let them, because they never ask what you paid for the home.
On the default sale, the cash at closing is $220,000. The gain is the sale price net of selling costs, $470,000, minus your $370,000 basis of purchase price plus improvements, which is $100,000. Two numbers, two meanings:
| The default $500,000 sale | |
|---|---|
| Net proceeds (cash at closing) | $220,000 |
| Gain over your basis (profit) | $100,000 |
| Taxable gain after the exclusion | $0 |
thiscalc.com states the problem plainly: without a purchase price, it says, "profit analysis is impossible," so it does not try. This page asks for the purchase price and shows all three figures.
The tax the other net sheets leave out
You can exclude up to $250,000 of gain from tax if you file single, or $500,000 married filing jointly, provided the home was your main residence for at least 2 of the last 5 years. This is the Section 121 exclusion, and it is why most home sales owe no capital gains tax at all.
That is exactly the number the field omits. mortgagecalculator.org explains the exclusion in an article, then admits "this calculator does not take into account capital gains." thecalculatorproject.com leaves capital gains "completely absent." Here the $100,000 gain on the default sale falls entirely inside the $500,000 married exclusion, so the tax is zero and the net after tax stays $220,000.
The tax only bites on a large gain. Take a home bought long ago for $200,000 and sold for $900,000 by a single filer:
| A $900,000 sale, single filer, $200,000 basis | |
|---|---|
| Gain over basis | $646,000 |
| Section 121 exclusion | $250,000 |
| Taxable gain | $396,000 |
| Capital gains tax at 15% | $59,400 |
That $59,400 is real money, and it never appears on a net sheet that stops at cash.
The buyer agent commission you may not owe
Since the NAR settlement took effect on August 17, 2024, a seller is no longer automatically responsible for the buyer agent commission. A listing agent can no longer advertise buyer-agent pay on the MLS, and that fee is now negotiated separately.
So this page keeps the listing and buyer commissions on separate lines. Set the buyer-agent share to zero and the net proceeds rise by that amount, which lets you model a sale where you do not offer it. The default splits 2.5% and 2.5%, but neither is fixed by anything anymore.
Where the numbers come from
Net proceeds are the sale price minus the mortgage payoff, the two commissions, and the other closing costs. The gain is the amount realized, sale price less selling expenses, minus the adjusted basis, purchase price plus capital improvements. The exclusion, $250,000 or $500,000 by filing status, comes off the gain if the ownership and use test is met, and whatever remains is taxed at your long-term rate of 0%, 15% or 20%.
Capital improvements matter because they raise the basis and lower the gain. A new roof or an addition counts; routine repairs do not. Keeping the receipts is what protects you if a future sale runs past the exclusion.
What this does not decide for you
This is an estimate of your proceeds and a rough capital gains figure, not tax preparation. Your actual gain can be adjusted by selling expenses, depreciation from any rental use, and state tax that varies widely, none of which a single rate captures. The exclusion has conditions beyond the two-year test, including a limit on claiming it more than once in two years.
None of this is advice about whether or when to sell. For the tax that turns on your own return, a CPA or tax adviser is the right call, and this page is a starting point for that conversation, not a substitute for it.
Frequently asked questions
How much will I walk away with when I sell my house? Your net proceeds are the sale price minus the mortgage payoff, the agent commissions, and the closing costs. On a $500,000 sale with a $250,000 payoff, 5% total commission, and 1% in other costs, the net proceeds are $220,000 of cash at closing. That is separate from your profit, which is the gain over what you paid.
Do I pay capital gains tax when I sell my home? Often not, because of the Section 121 exclusion, though every other net sheet skips this. You can exclude up to $250,000 of gain if you file single, or $500,000 married filing jointly, provided you owned and lived in the home for at least 2 of the last 5 years. Only gain above the exclusion is taxed, at the long-term rate of 0%, 15% or 20%.
What is the difference between net proceeds and profit? Net proceeds are the cash you receive at closing, after the loan and costs are paid. Profit, or gain, is the sale price net of selling costs minus what you paid plus improvements. They are different numbers: on the default sale the net proceeds are $220,000 while the gain is $100,000, and the tax is based on the gain, not the cash.
How is the gain on a home sale calculated? Gain is the amount realized minus the adjusted basis. The amount realized is the sale price less selling expenses like agent commission. The adjusted basis is your purchase price plus capital improvements. On the default sale, $500,000 less $30,000 of costs is $470,000 realized, minus a $370,000 basis, for a $100,000 gain, all of which the $500,000 married exclusion covers.
Does the seller still pay the buyer agent commission? Not automatically, not since the NAR settlement took effect on August 17, 2024. A listing agent can no longer advertise buyer-agent pay on the MLS, and the buyer agent commission is now negotiated separately. This calculator keeps the two commissions on separate lines, so you can set the buyer-agent share to zero if your contract does not offer it.
What counts as a capital improvement? A lasting addition or upgrade that raises the value of the home, such as a new roof, an addition, or a kitchen remodel, as opposed to routine repairs. Improvements add to your cost basis, which lowers the taxable gain. Keeping receipts matters, because a higher basis means a smaller gain if you ever exceed the exclusion.
What if I sell for less than I paid? Then there is no gain and no capital gains tax, though the loss on a personal residence is not deductible either. The calculator still shows your net proceeds, which can be positive even on a loss if your mortgage payoff is small. Gain and proceeds move independently, which is the whole reason to see them as two numbers.