How to Use the Home Sale Net Proceeds Calculator
The check you get at closing is never the same as your sale price — capital gains tax, agent commission, and your remaining mortgage balance all come out first. The biggest factor is usually the Section 121 home sale exclusion, which can shield most or all of your gain from tax if you qualify. Enter your sale price, purchase price, filing status, mortgage payoff, and commission rate to see your estimated net proceeds.
Under Section 121, if you owned and lived in the home as your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 of gain if single, or $500,000 if married filing jointly. Only the gain above that exclusion is taxable — many sellers of a primary residence owe no federal capital gains tax at all.
Gain above the exclusion is generally taxed at the long-term capital gains rate (this calculator uses a simplified 15%), plus an additional 3.8% Net Investment Income Tax (NIIT) for higher-income filers. After subtracting that tax, your agent's commission, and any remaining mortgage payoff from the sale price, what's left is your net proceeds. Treat this as an estimate — your actual tax depends on your full income picture, state taxes, and any selling costs not included here.
Frequently Asked Questions
If you owned and lived in the home as your primary residence for at least 2 of the last 5 years, you can exclude up to $250,000 of gain ($500,000 if married filing jointly) from capital gains tax under Section 121. Only gain above that exclusion is taxed.
This calculator uses a simplified 15% long-term capital gains rate, plus an optional 3.8% Net Investment Income Tax (NIIT) for higher earners. Your actual rate depends on your total taxable income and filing status — consult a tax professional for precise figures.