Sale Proceeds Gap Calculator

Sellers need cash from sale proceeds after payoff and costs. This calculator sizes the gap.

Sale price

Loan payoff

Commission %

Closing costs

Prepayment penalty

Net proceeds gap

$195,750

Net before payoff

$605,750

Total selling costs

$44,250

How the math works

Net = sale price − commission − closing − prepay − payoff. Positive = cash to seller.

Always calculate proceeds with buffer for tax arrears, HOA arrears, and last-minute title surprises. Budget seller to bring 1% of sale price to closing just in case; refund if not needed.

How to Use

Enter sale price.
Enter loan payoff.
Enter commission %.
Enter closing costs.
Enter prepayment penalty.
Read net proceeds gap.

Frequently Asked Questions

Typical closing costs?

Transfer taxes, title, escrow, recording, HOA docs. Total 1-2% of sale price. Add commission 5-6% and prepay penalty (if any).

Short sale trigger?

When gap is negative (payoff > proceeds), seller owes. Can bring cash-to-close, negotiate lender haircut (short sale), or walk (foreclosure).

Timing?

Calculate 30 days before listing. If gap is negative or tight, reprice listing or negotiate with lender in advance. Don't learn at closing table.

When does a lender negotiate vs foreclose?

Lenders calculate their net recovery from foreclosure (asset value minus legal, time, and sale costs) and compare to any workout proposal. If your offer nets the lender more than foreclosure, and you present it with clear sources of capital, most lenders will engage. Bring a credible sponsor, documented sources, and a timeline — vague asks get declined. Build the relationship before distress, not after.