Home Sale Proceeds Calculator

Calculate your true net proceeds from selling a home. Includes capital gains tax analysis, the $250K/$500K primary residence exclusion, cost basis from improvements, state taxes, and 1031 exchange options.

$
$
yrs
$
$
%
$
Net Proceeds After All Costs
$273,750
No capital gains tax — fully covered by $500,000 exclusion
Mortgage Payoff: $240,000
Commission: $30,250
Closing Costs: $6,000
Net to You: $273,750
Capital Gain
$200,000
Exclusion Amount
$200,000
Taxable Gain
$0
Net Before Tax
$273,750

Detailed breakdown of your capital gains tax situation including primary residence exclusion and depreciation recapture.

$
yrs
%
Adjusted Cost Basis
$350,000
Purchase + improvements − depreciation
Total Capital Gain
$200,000
Sale price − adjusted basis
Primary Residence Exclusion
$200,000
MFJ $500K — you qualify (8 yrs)
Taxable Gain After Exclusion
$0
Fully excluded — no federal tax!
Federal Capital Gains Tax
$0
15% of $0
No federal capital gains tax! Your entire gain of $200,000 is covered by the $500,000 primary residence exclusion. You take home the full $273,750.

A 1031 exchange lets you defer capital gains taxes by rolling your proceeds into a like-kind investment property.

$
%
yrs
Tax Deferred via 1031
$0
You don't pay this now
Down Payment (Net Proceeds)
$273,750
Your equity rolled into new property
Replacement Loan Amount
$426,250
$700,000 − $273,750
Monthly Payment on Replacement
$2,765
6.8% rate, 30-year
Deferred Tax Invested
$0
If deferred tax grew at 7% for 10 yrs
Tax Basis in New Property
$350,000
Carries forward — tax still owed eventually
1031 Exchange Rules: You must identify a replacement property within 45 days of closing and close on it within 180 days. The replacement must be of equal or greater value to defer ALL taxes. You cannot take personal use of the property. Primary residences do NOT qualify — only investment/business property.

How to Use This Home Sale Proceeds Calculator

This calculator goes beyond a simple subtraction tool. It calculates your capital gains tax liability — including the $250K/$500K primary residence exclusion — which is the most important and often overlooked factor in your true net proceeds.

Quick Calculator

Enter your expected Sale Price, original Purchase Price, Years Owned, any Improvements made (these increase your cost basis and reduce taxable gain), your Filing Status, Mortgage Payoff amount, and typical seller costs. The result shows your capital gain, whether you owe tax, and your final take-home after everything.

Advanced Analysis

The Capital Gains Analysis tab breaks down the primary residence exclusion, short vs long-term rates, and depreciation recapture if you ever rented the home. The Cost Basis tab explains what counts as an improvement. The Sell Now vs Wait tab compares your net if you wait and home value increases further.

Professional Simulator

The 1031 Exchange tab shows how rolling proceeds into an investment property defers capital gains tax entirely. The State Capital Gains tab adds state-specific tax to your calculation. The Net Worth Impact tab compares selling and investing vs keeping the home.

Capital Gains Tax on Home Sale: The Key Formula

Adjusted Basis = Purchase Price + Capital Improvements − Depreciation Taken
Capital Gain = Sale Price − Adjusted Basis
Taxable Gain = Capital Gain − Primary Residence Exclusion ($250K single / $500K married)
Tax Owed = Taxable Gain × Capital Gains Rate (0%, 15%, or 20%)
Net Proceeds = Sale Price − Mortgage Payoff − Selling Costs − Tax Owed

The primary residence exclusion is the most important rule in real estate tax law. If you've owned and lived in the home 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 federal capital gains tax. Most sellers owe nothing in federal capital gains tax.

Example: Selling After 9 Years

Michael and Linda's Home Sale

Michael and Linda (married, filing jointly) bought their home for $325,000 in 2015 and sold it in 2024 for $610,000 after spending $45,000 on improvements.

Sale price$610,000
Original purchase price$325,000
Capital improvements$45,000
Adjusted cost basis$370,000
Capital gain$240,000
MFJ exclusion$500,000
Taxable gain$0 (fully excluded!)
Federal cap gains tax$0
Agent commission (5.5%)$33,550
Closing costs$6,000
Mortgage payoff$268,000
Net proceeds$302,450

Despite a $240,000 gain, they owe no federal capital gains tax because their gain falls well below the $500,000 exclusion. Their $45,000 in improvements increased their basis and reduced their gain by $45,000 — saving them up to $6,750 in potential taxes.

Frequently Asked Questions

Most homeowners owe no federal capital gains tax thanks to the primary residence exclusion (IRC Section 121). If you've lived in the home as your primary residence for 2 of the last 5 years, you can exclude up to $250,000 of gain ($500,000 married). Only gains above these thresholds are taxable. The IRS reports that fewer than 5% of home sellers pay capital gains tax.
Capital improvements add value, extend the life, or adapt the home to new uses: additions (new room, garage, deck), kitchen/bath remodels, new roof, HVAC replacement, new windows, landscaping. Regular maintenance does NOT count: painting, fixing a broken window, replacing a faucet. Keep all receipts — improvements reduce your taxable gain.
If you rented your home, two things happen: (1) You may still qualify for the primary residence exclusion if you lived in it 2 of the last 5 years, but the exclusion is pro-rated for years used as a rental. (2) You owe depreciation recapture tax at 25% on all depreciation you claimed as a rental. Example: $50,000 in depreciation = $12,500 recapture tax due at sale.
A 1031 exchange defers capital gains taxes by rolling the sale proceeds into a "like-kind" replacement investment property. It does NOT apply to your primary residence — only investment/rental property. If you're selling a rental or investment property, a 1031 exchange can defer taxes indefinitely. Rules: identify replacement property within 45 days, close within 180 days, and buy equal or greater value.
Seven states have no income tax (TX, FL, NV, TN, WY, SD, AK), so there's no state capital gains tax. Other states tax capital gains as ordinary income at rates up to 13.3% (California). The primary residence exclusion applies only to federal taxes — states may have their own exclusion rules. California, for example, does NOT have the federal $250K/$500K exclusion.

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