By Meraj Uddin Provat · Last reviewed August 24, 2026 · Editorial Standards
Most sellers do the math like this: sale price minus mortgage payoff equals what I keep. On a $450,000 sale with a $240,000 mortgage, that would be $210,000. The real number is closer to $175,500 — roughly $34,500 less. Here is exactly where it goes.
The full cost breakdown
| Line item | Amount |
|---|---|
| Sale price | $450,000 |
| Agent commission (5.5%) | − $24,750 |
| Seller closing costs (1.5%) | − $6,750 |
| Buyer concessions | − $3,000 |
| Mortgage payoff | − $240,000 |
| Net proceeds | $175,500 |
That is 39% of the sale price landing in your pocket. Costs alone (before the mortgage payoff) ate $34,500 — about 7.7% of the sale price.
What each cost actually covers
- Agent commission (typically 5–6%) — historically split between both agents. Since the 2024 NAR settlement changed how buyer-agent compensation is negotiated, this is more openly negotiable than it used to be. Ask.
- Seller closing costs (roughly 1–3%) — title insurance, transfer taxes, escrow fees, attorney fees where required, prorated property taxes. Varies significantly by state.
- Buyer concessions — credits you agree to after inspection, or help with the buyer closing costs. Budget for this even if you hope to avoid it.
- Mortgage payoff — not just your remaining balance: it includes interest accrued through the closing date, and any prepayment penalty if your loan has one.
The number that actually matters
If you are buying your next home with the proceeds, the net figure is your real down-payment budget — not the sale price. Sellers who plan around the gross number regularly find themselves $30,000–$40,000 short at the next closing. Run the net first, then shop.
Run your own numbers
Commission rates, closing costs, and payoff amounts vary widely by state and situation. The free Home Sale Proceeds Calculator shows your exact net with a visual breakdown of where every dollar goes — no signup required. Buying next? Pair it with the Closing Cost Calculator to see the cash you will need on the purchase side.
FAQ
How do I calculate net proceeds from a home sale?
Take the sale price and subtract agent commission (typically 5-6%), seller closing costs (roughly 1-3%), any buyer concessions, and your full mortgage payoff including accrued interest. On a $450,000 sale with a $240,000 payoff, that typically nets around $175,500.
What percentage of a home sale do sellers keep?
It depends heavily on remaining mortgage balance. Selling costs alone typically run 7-9% of the sale price before the mortgage payoff. In the $450,000 example with a $240,000 mortgage, the seller keeps about 39% of the sale price.
Are real estate commissions negotiable?
Yes. Commission rates have always been negotiable, and the 2024 NAR settlement made buyer-agent compensation more openly negotiated. On a $450,000 sale, reducing commission by one percentage point saves $4,500.
Do I pay taxes on home sale proceeds?
Often no. Under the IRS primary-residence exclusion, single filers can typically exclude up to $250,000 of capital gain and married couples filing jointly up to $500,000, if you owned and lived in the home for at least two of the past five years. Consult a tax professional for your situation.