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How to use
- Enter Sale price.
- Enter Selling costs.
- Enter Loan payoff.
- Calculate, then review what is included in the definition before making a financial decision.
How it is calculated
Net proceeds = sale price − selling costs − loan payoff
Example
A 1,100,000 sale less 55,000 costs and 650,000 loan payoff gives 395,000 net proceeds.
Important notes
Taxes, settlement charges or accrued interest may still apply. Use the final payoff and settlement statements for actual amounts.
Worked examples and interpreting results
| Case | Calculation | Result |
|---|---|---|
| Costs and debt | 55000 + 650000 | 705,000 |
| Net proceeds | 1100000 − 705000 | 395,000 |
Frequently asked questions
Are net proceeds the same as profit?
No. Profit also requires comparison with purchase cost, improvements and prior cash flows.
Is this a loan approval or credit decision?
No. This is a numerical calculator only; lenders may use different income, debt, appraisal and fee policies.
Should I use gross or net income?
Use the income type named by the field. Do not substitute net for gross because it changes the denominator and result.