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Enter your sale price, mortgage balance, commissions, closing costs, and taxes to see your estimated net proceeds after selling.
Sale Details
Mortgage & Liens
Selling Costs
Tax Estimates
Depreciation recapture is taxed at 25% regardless of income bracket.
Auto-filled from state or enter manually. TX, FL, NV, WA, TN: 0%.
A seller net sheet is the single most important financial document for any property seller. It estimates the cash you actually walk away with after paying off your mortgage, agent commissions, closing costs, repairs, and taxes. Without one, sellers routinely overestimate their proceeds by $10,000 to $50,000 or more — leading to budget shortfalls on their next purchase, unexpected tax bills, or unrealistic listing price expectations.
This calculator handles the full picture: standard net proceeds estimation, reverse-solving for a required sale price, and finding your maximum allowable cost budget. All calculations run in real time as you type, with no signup required.
What Is a Seller Net Sheet?
A seller net sheet is a detailed worksheet that itemizes every cost associated with selling a property and subtracts them from the expected sale price. The bottom line — your net proceeds — is the actual cash you receive at closing after the title company disburses all payments. Real estate agents, title companies, and attorneys use seller net sheets during listing presentations to set realistic expectations.
The net sheet accounts for six major cost categories: agent commissions, seller closing costs (title insurance, escrow fees, transfer taxes), repairs and seller concessions negotiated with the buyer, mortgage payoff and liens, federal capital gains tax, and state income tax. For investment property sellers, depreciation recapture tax at 25% is an additional line item that primary residence sellers typically do not face.
Unlike a HUD-1 settlement statement (which is prepared at closing and shows final, exact numbers), a seller net sheet is an estimate prepared before listing or during negotiations. It helps sellers answer the fundamental question: "How much will I actually pocket from this sale?" The earlier you run this calculation, the better positioned you are to set a listing price, negotiate offers, and plan your next move financially.
How to Calculate Seller Net Proceeds
Step-by-step with a real worked example
Step-by-step calculation
Start with Sale Price
Your expected or agreed sale price
Sale Price: $350,000Subtract Agent Commission
Typically 5-6% of sale price (split between agents)
$350,000 x 5.5% = $19,250Subtract Closing Costs
Title insurance, escrow, transfer tax — typically 1-3%
$350,000 x 2% = $7,000Subtract Repairs & Mortgage Payoff
Negotiated repairs + outstanding mortgage balance + liens
$5,000 repairs + $180,000 mortgage = $185,000Subtract Taxes
Capital gains + depreciation recapture + state tax
Capital gain: ($350k - $200k - $31k costs) x 15% = $17,850The Formula
Pro Tips for Accurate Results
- 1. Get your exact mortgage payoff quote from your lender — it differs from your current balance due to accrued interest.
- 2. Ask your agent for a preliminary title report to uncover any hidden liens or judgments.
- 3. Budget 1-3% of sale price for seller concessions — buyers frequently request them.
- 4. If you owned the property for more than 2 of the last 5 years as a primary residence, you may qualify for the Section 121 capital gains exclusion ($250K single / $500K married).
Real-World Example: Selling an Investment Property in Dallas, TX
Illustrative scenario for a rental property held 7 years
Sale Details
Result
Sale Price: $350,000
$140,746
Net Proceeds (40.2% of sale price)
In this example, the seller walks away with approximately 40% of the sale price. The largest deductions are the mortgage payoff ($155K), agent commission ($19.3K), and taxes ($23K combined). Texas has no state income tax, which saves this seller compared to high-tax states like California or New York.
Agent Commission Breakdown: Buyer's vs. Seller's Agent
Agent commissions are typically the largest single cost when selling a property, often ranging from 5% to 6% of the sale price. Following the 2024 NAR settlement, commission structures have shifted. Previously, the seller's agent would offer a set commission to the buyer's agent through the MLS. Now, buyer's agent compensation is negotiated separately and may be paid by the buyer, the seller, or split between them.
Seller's Agent (Listing Agent)
2.5 - 3%
Handles listing, marketing, showings, negotiations, and closing coordination. This commission is typically non-negotiable below 2.5% for full-service agents, though discount brokerages and flat-fee MLS services can reduce it.
Buyer's Agent
2.5 - 3%
Represents the buyer's interests. Post-NAR settlement, this fee is negotiated directly between the buyer and their agent. Sellers may still choose to offer buyer's agent compensation as an incentive to attract more offers.
How to Reduce Commission Costs
- - Negotiate a lower listing commission (especially on high-value properties)
- - Use a flat-fee MLS service ($200-500) and handle showings yourself
- - Sell FSBO (For Sale By Owner) and only offer buyer's agent compensation
- - On investment properties, sell directly to other investors (no buyer's agent)
Closing Costs Sellers Pay
Seller closing costs typically range from 1% to 3% of the sale price, depending on the state and local customs. Per CFPB guidelines, these are separate from and in addition to agent commissions. Here is what sellers typically pay at closing:
| Cost Item | Typical Range | Notes |
|---|---|---|
| Title Insurance (Owner's Policy) | $500 - $3,500 | Seller pays in most states. Rate varies by sale price and state. |
| Escrow / Settlement Fees | $500 - $2,000 | Split 50/50 with buyer in many markets. |
| Transfer Tax / Documentary Stamps | 0.1 - 2% of price | Varies widely by state. Some states have none (TX). Others charge 1-2% (DE, DC). |
| Recording Fees | $50 - $250 | County charges for recording deed transfer. |
| Prorated Property Taxes | Varies | Seller pays taxes through closing date. May result in credit or debit. |
| HOA Transfer Fee | $200 - $500 | If applicable. Some HOAs charge $500+ for document preparation. |
| Attorney Fees | $500 - $1,500 | Required in some states (NY, NJ, GA, MA). Optional elsewhere. |
Costs vary by state, county, and local custom. Get a preliminary closing cost estimate from your title company or attorney before listing.
Capital Gains Tax on Property Sale
When you sell a property for more than you paid (adjusted for improvements and selling costs), the profit is a capital gain subject to federal tax. Per IRS Topic 409, the rate depends on how long you owned the property and your taxable income:
Long-Term (Held 1+ Year)
0%, 15%, or 20% depending on taxable income. Most sellers pay 15%. For 2026, the 0% rate applies to taxable income under ~$47,025 (single) or ~$94,050 (married). The 20% rate kicks in at ~$518,900 (single) or ~$583,750 (married). Net investment income tax (NIIT) of 3.8% may apply above $200K/$250K.
Short-Term (Held Under 1 Year)
Taxed as ordinary income at your marginal tax bracket (10-37%). This is significantly more expensive than long-term rates. If possible, hold for at least one year before selling to qualify for long-term rates.
Section 121 Exclusion — Primary Residence
If you lived in the property as your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 (single) or $500,000 (married filing jointly) of capital gains from federal tax. This is one of the most powerful tax benefits in the U.S. tax code. It does not apply to investment properties unless you converted them to a primary residence and met the residency requirement.
Capital Gain Formula
Selling expenses that reduce your capital gain include agent commissions, closing costs, and transfer taxes. Always consult a CPA for your specific tax situation.
Depreciation Recapture Tax (25%)
If you claimed depreciation deductions on an investment property during ownership, the IRS requires you to "recapture" those deductions when you sell. Per IRS Publication 544, depreciation recapture (Section 1250) is taxed at a flat 25% rate — regardless of your income bracket. This is separate from and in addition to capital gains tax.
How Depreciation Works
Residential rental property is depreciated over 27.5 years using straight-line depreciation. Only the building value is depreciated (not land). Example: $200,000 purchase, $40,000 land = $160,000 depreciable basis. Annual depreciation = $160,000 / 27.5 = $5,818/year.
Recapture Calculation
If you held for 5 years and claimed $29,091 in depreciation ($5,818 x 5 years), your recapture tax = $29,091 x 25% = $7,273. This is due whether you actually claimed the depreciation or not — the IRS assumes you should have.
How to Defer Both Taxes: 1031 Exchange
A 1031 like-kind exchange allows you to defer both capital gains tax and depreciation recapture by reinvesting the proceeds into a qualifying replacement property within 180 days. You must use a qualified intermediary (QI) — you cannot touch the funds. The exchange must be identified within 45 days and completed within 180 days. This is the most commonly used tax deferral strategy for real estate investors.
How to Increase Your Net Proceeds
Negotiate Commission
On a $350K sale, reducing commission from 6% to 5% saves $3,500. On a $500K sale, the savings jump to $5,000. Every half-point matters — negotiate before signing the listing agreement.
Minimize Concessions
Price the property right from day one to avoid sitting on market and getting lowballed. Properties that sell within 2 weeks receive fewer repair and concession requests than those lingering 60+ days.
Use a 1031 Exchange
Deferring capital gains and depreciation recapture on a $150K gain can save $25,000+ in taxes. Reinvest into a replacement property and let your equity continue compounding tax-deferred.
Pre-Listing Repairs
Fix known issues before listing. Buyers overestimate repair costs by 2-3x. A $2,000 roof repair done pre-listing prevents a $6,000 concession request during negotiations.
Time the Sale
Hold for at least 1 year to qualify for long-term capital gains rates (15% vs. up to 37%). Hold for 2+ years as primary residence for the Section 121 exclusion.
Track Improvement Costs
Capital improvements (new roof, HVAC, renovations) increase your cost basis, reducing your taxable capital gain. Keep all receipts and contractor invoices throughout ownership.
Common Seller Net Sheet Mistakes
Forgetting depreciation recapture tax
Investment property sellers often calculate capital gains but forget the 25% depreciation recapture. On a property held 10 years with $58K in depreciation, that is $14,500 in unexpected taxes at closing.
Using current balance instead of payoff amount
Your mortgage payoff amount is not the same as your current balance. It includes accrued interest through the closing date, potential prepayment penalties, and recording fees. Always request an official payoff quote from your lender.
Ignoring state and local transfer taxes
Transfer taxes vary dramatically by state. In Texas, there are none. In New York City, the combined transfer tax is 1.4-1.825% of sale price — that is $7,000 to $9,125 on a $500K sale. Research your local rates before estimating.
Not accounting for prorated expenses
Property taxes, HOA dues, and utilities are prorated at closing. If you sell mid-year and have not paid the current year's taxes, those come out of your proceeds. Conversely, if you prepaid, you may receive a credit.
Overestimating the sale price
Sellers tend to overvalue their property by 5-10%. An inflated estimate cascades through every calculation, making net proceeds look higher than reality. Use recent comparable sales (not Zestimates) for a realistic price.
Frequently Asked Questions
What is a seller net sheet?
A seller net sheet is a financial worksheet that itemizes all costs of selling a property — including agent commissions, closing costs, mortgage payoff, repairs, and taxes — and subtracts them from the sale price to estimate the seller's net proceeds. It is prepared before listing to set realistic expectations about how much the seller will actually receive at closing.
How much does it cost to sell a house?
Total selling costs typically range from 8% to 10% of the sale price for most sellers. This includes 5-6% in agent commissions, 1-3% in closing costs (title insurance, escrow, transfer taxes), and additional costs for repairs, concessions, and staging. For investment properties, capital gains tax and depreciation recapture can add another 5-15% depending on the gain.
Do I have to pay capital gains tax when selling my home?
If you lived in the home as your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 (single) or $500,000 (married) of capital gains from federal tax under Section 121. For investment properties, capital gains tax applies to the profit from the sale. You can defer taxes using a 1031 like-kind exchange into another investment property.
What is depreciation recapture and how does it affect my net proceeds?
If you claimed depreciation deductions on a rental property, the IRS recaptures those deductions when you sell at a flat 25% tax rate. For example, if you claimed $40,000 in total depreciation, you owe $10,000 in recapture tax at closing — in addition to any capital gains tax. This applies even if you did not actually claim the depreciation, as the IRS treats it as "allowed or allowable."
Can I negotiate real estate agent commissions?
Yes. Agent commissions are always negotiable. After the 2024 NAR settlement, commission structures have become more transparent and negotiable than ever. You can negotiate a lower listing commission, use a flat-fee MLS service, or choose how much to offer for buyer's agent compensation. On higher-value properties ($500K+), agents are often willing to accept a lower percentage because the dollar amount is still substantial.