Disposition Fee On Proceeds Calculator

Disposition fees vary by basis. This calculator compares gross vs net proceeds bases.

Gross sale price

Selling costs

Fee %

1=Net basis, 0=Gross

Disposition fee

$350,000

Fee on gross

$350,000

Fee on net

$338,000

How the math works

Fee = (basis) × rate. Basis is gross sale price or net proceeds depending on flag.

Net-basis disposition fees align sponsor economics with minimizing closing-cost leakage. On a $35M sale with $1.2M in selling costs, net basis saves LPs $12-24k directly; the real value is structural — it removes the sponsor's indifference to transaction cost discipline.

How to Use

Enter gross sale price.
Enter selling costs.
Enter fee %.
Enter net basis flag.
Read disposition fee.

Frequently Asked Questions

Gross vs net?

Gross sale price basis: larger fee, simpler calculation. Net proceeds (after selling costs): smaller fee, cleaner alignment with LP exit economics. Net basis better aligns sponsor/LP interest on lowering transaction costs.

Typical?

1-2% of gross sale price, standard MF. 1% below 1% often too low for sponsor diligence and closing support. >2% considered high by institutional LPs; requires justification via heavy asset mgmt workload.

Timing?

Paid at closing from sale proceeds. Occasionally deferred if promote/carry also due. Some agreements offset disposition fee against promote (sponsor's share already captures upside). Check PPM fee stack carefully.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.