Enter your sale price and see exactly how much you'll walk away with after mortgage payoff, agent commissions, closing costs, and capital gains taxes — with state-specific accuracy.
Property Information
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The price you expect to accept from a buyer
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Your current payoff amount — call your lender for the exact figure (0 if owned free and clear)
5 yrs
0 yrs30 yrs
Enter your expected sale price above to see your net proceeds
Want the full picture — taxes, buy vs rent comparison, and net worth projection?
Your net proceeds are not simply "sale price minus mortgage." Every home sale involves a cascade of costs that reduce what you actually receive. The formula is:
Sale Price − Mortgage Payoff (+ per-diem interest) − Agent Commissions (listing + buyer) − Escrow / Settlement Fee − Owner's Title Insurance − Transfer Tax (state-specific) − Recording & Wire Fees − Prorated Property Tax − Pre-Sale Costs − Capital Gains Tax (if applicable) ══════════════════════════ = NET PROCEEDS
Most sellers are surprised by two costs in particular: state transfer taxes (which can reach 2–3% in some states) and capital gains taxes (which apply when gains exceed the $250k/$500k exclusion). The waterfall chart above makes every deduction visible so nothing is hidden.
What Are Typical Closing Costs When Selling?
Beyond commissions, sellers pay several transaction costs that vary by state, county, and deal specifics.
Cost Item
Typical Range
Agent commissions (total)
4–6% of sale
Owner's title insurance
0.3–0.5%
Escrow / settlement fee
0.1–0.2%
State transfer tax
0–3% (varies)
Recording & wire fees
$150–$400
HOA transfer (if HOA)
$200–$600
Prorated property taxes
1–8 months
Total (excl. cap gains)
6–10% of sale
Transfer taxes vary enormously: TX, CO, and 15 other states charge nothing; PA charges 2% state + 1–2% local; WA charges 1.1–3% on a graduated scale.
Do I Have to Pay Capital Gains Tax When I Sell My Home?
Most homeowners pay zero federal capital gains tax on their home sale thanks to the primary residence exclusion (IRC Section 121). Here's how it works:
✅
Owned AND lived there 2+ of last 5 years
Full exclusion: up to $250k (single) or $500k (married filing jointly)
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Lived there 1–2 years due to hardship
Partial exclusion: prorated based on months lived there
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Lived there less than 1 year
No exclusion — gain taxed as ordinary income (short-term)
If your gain exceeds the exclusion, the taxable portion is taxed at long-term capital gains rates: 0% (income below ~$47k), 15% (most homeowners), or 20% (high earners). An additional 3.8% Net Investment Income Tax (NIIT) may apply if total income exceeds $200k ($250k married).
Important: your selling costs (commissions, escrow, title insurance, recording fees) reduce your taxable gain — they are deducted from the sale price before calculating capital gains. This is often overlooked and can significantly reduce your tax bill.
How Has the NAR Settlement Changed Selling Costs?
In August 2024, a landmark National Association of Realtors settlement changed how real estate commissions work in the United States — with significant implications for sellers.
Before (pre-August 2024)
Sellers offered a total commission (typically 5–6%) that automatically covered both their agent and the buyer's agent. Sellers had no choice — buyers' agents were compensated through the seller's commission, bundled invisibly into the MLS listing.
After (post-August 2024)
Sellers now set their listing agent fee independently. Buyer's agent compensation is separately negotiated between the buyer and their agent. Sellers can offer to cover some or all of the buyer's agent fee to attract more offers — or offer nothing and leave it to the buyer to negotiate.
In practice, many sellers are now paying 4–5% total (2–2.5% listing + 2–2.5% buyer) vs. the traditional 5–6%. The long-term trend points toward lower commissions as sellers have more negotiating power. Discount brokers offering 1–1.5% listing fees have gained significant market share.
Home Sale Calculator — Frequently Asked Questions
How much does it cost to sell a house?
Total selling costs typically run 8–10% of the sale price. This includes agent commissions (5–6% traditionally, now more variable after the 2024 NAR settlement), closing costs (1–3% including escrow, title insurance, recording fees, and transfer taxes), pre-sale costs (staging, repairs, photography), and capital gains taxes if applicable. On a $400,000 home, expect to pay $32,000–$40,000 in total selling costs.
What is the average realtor commission in 2026?
Following the August 2024 NAR settlement, buyer's agent compensation is now negotiated separately rather than bundled into the seller's commission. Listing agent fees typically range from 2–3%. Buyer's agent compensation is now separately negotiated, commonly 2–3%. The traditional "6% total" split is no longer standard. Many sellers are now negotiating lower commissions, especially with discount brokers (1–1.5% listing fee) or FSBO options.
How do I calculate capital gains on a home sale?
Capital gains = sale price − adjusted cost basis − selling costs. Your adjusted cost basis is your original purchase price plus capital improvements minus any depreciation claimed (if it was a rental). Most homeowners qualify for the primary residence exclusion ($250,000 single / $500,000 married filing jointly) if they lived in the home for at least 2 of the last 5 years. After subtracting the exclusion, the remaining gain is taxed at 0%, 15%, or 20% depending on your total income.
What is the $500,000 capital gains exclusion?
The primary residence exclusion (IRC Section 121) allows single filers to exclude up to $250,000 in capital gains from a home sale — $500,000 for married filing jointly. To qualify, you must have owned and lived in the home as your primary residence for at least 2 of the last 5 years. This exclusion can be used once every 2 years. If you don't fully qualify, you may be eligible for a partial exclusion if you're selling due to a job change, health reasons, or divorce.
What closing costs does the seller pay?
Sellers typically pay: real estate agent commissions (2–6% total), owner's title insurance (0.3–0.5%), escrow/settlement fees (0.1–0.2%), recording fees ($100–$300), state transfer taxes (0–3% depending on state), wire transfer fees ($25–$75), and prorated property taxes through closing. HOA transfer fees ($200–$500) apply if you have an HOA. Some costs are negotiable between buyer and seller.
How much will I net from selling my house?
Net proceeds = sale price − mortgage payoff − agent commissions − closing costs − pre-sale costs − prorated property taxes − capital gains tax. For a typical sale, plan on 8–10% in total costs. Our calculator shows you an itemized waterfall from sale price to your final check, including state-specific transfer taxes and capital gains tax with the primary residence exclusion applied.
What is a transfer tax on a home sale?
Transfer taxes (also called deed taxes, conveyance taxes, or real estate excise taxes) are state and local taxes imposed when property ownership changes hands. Rates vary dramatically by state: Texas, Colorado, Idaho, and 14 other states have no transfer tax; Pennsylvania charges 2% state plus 1–2% local (often split with the buyer); Washington state has a graduated rate from 1.1% to 3% on high-value properties. The seller typically pays, though in some states it's split or paid by the buyer.
How does depreciation recapture work when selling a rental property?
If you claimed depreciation on a rental property, the IRS requires you to "recapture" that depreciation at a flat 25% federal rate when you sell — even if the home is now your primary residence and you qualify for the capital gains exclusion. For example, if you claimed $40,000 in depreciation over 10 years, you'll owe $10,000 in federal recapture tax (25% × $40,000). States also typically tax recapture as ordinary income. The exclusion does NOT shelter depreciation recapture.
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