Your net proceeds - your walk-away number - is the sale price minus what you still owe on the mortgage, minus selling costs like commission, escrow, title, and transfer tax. For most California sellers, costs run roughly 7 to 9 percent of the sale price.
What net proceeds actually means
Net proceeds is the money you actually keep after selling - the amount wired to you at closing. It is not the sale price, and it is not the sale price minus your loan balance. Several costs come out between the headline number on the contract and the number in your account.
Sellers most often go wrong by anchoring on either the sale price (forgetting all the costs) or their equity (forgetting selling costs are subtracted on top of the loan payoff). Your true walk-away number sits below both. Knowing it accurately matters because it determines your down payment on the next home, your true cost of moving, and whether selling now makes financial sense at all.
The math, step by step
The calculation is straightforward once you list every piece. Start with the expected sale price - use a realistic, comp-supported number, not a hopeful one. From that, subtract the payoff balance on your mortgage, which includes the remaining principal plus a small amount of accrued interest through the closing date, and any second loan or HELOC balance.
Next, subtract selling costs. The largest is commission. Then the closing-side costs: the owner's title insurance policy, your share of escrow fees, the county documentary transfer tax at $1.10 per $1,000 of value, recording fees, the natural hazard disclosure report, and any HOA transfer or document fees. Then subtract any pre-listing prep costs you paid and any buyer credits or repair concessions negotiated after the inspection. Also account for property tax proration - you may owe a prorated share through the closing date. What is left is your estimated net proceeds.
A worked example
Here is the math on a realistic Ventura County sale. The figures are planning estimates - your escrow officer produces the exact numbers - but the structure is what every seller should understand before listing.
| Line item | Amount | Running total |
|---|---|---|
| Expected sale price | $800,000 | $800,000 |
| Less mortgage payoff | -$420,000 | $380,000 |
| Less total commission (about 5%) | -$40,000 | $340,000 |
| Less title insurance | -$2,000 | $338,000 |
| Less escrow fee (seller share) | -$2,000 | $336,000 |
| Less county transfer tax | -$880 | $335,120 |
| Less natural hazard report and recording | -$250 | $334,870 |
| Less pre-listing prep | -$6,000 | $328,870 |
| Less buyer credit after inspection | -$4,000 | $324,870 |
| Estimated net proceeds | about $324,870 |
The variables that move your number
Three variables move your walk-away number the most. The first is sale price - and this is exactly why accurate pricing matters. An overpriced launch that drags on and then sells below the comps does not just delay the sale; it directly lowers your net. The second is your mortgage payoff, which is easy to confirm: request a payoff statement from your lender so you are working with the real number, not your last statement balance.
The third is post-inspection concessions, which are not known until you are in contract. In a balanced market with around 2.1 months of inventory, as we have in Simi Valley in May 2026, some negotiation after the inspection is normal. A well-prepared home that was honest about its condition up front tends to face smaller credit requests. Capital gains tax can also affect what you ultimately keep, though many primary-home sellers qualify for a significant exclusion - that is a question for your tax professional, not your agent.
What I tell sellers about this number
I will not let a seller list a home without first walking them through a net-proceeds estimate. It is the number that actually matters - it tells you what you can put down on the next home, whether the timing of a move works, and whether selling now is the right call. Listing without it is planning your future on a number you have not checked.
The estimate should be conservative. I would rather a seller be pleasantly surprised at closing than come up short on the purchase of their next home. So I use a realistic sale price, a verified payoff figure, and a reasonable allowance for buyer concessions. If you are even considering selling, get this number early. The fastest way to a reliable estimate is a current home value plus your loan payoff - and from there the math above does the rest.
Frequently Asked Questions
What are net proceeds when selling a house?
Net proceeds are the money you actually keep at closing - the sale price minus your mortgage payoff and minus selling costs such as commission, escrow, title insurance, and transfer tax. It is your true walk-away number.
How do I calculate my walk-away number?
Start with a realistic sale price, subtract your mortgage payoff, then subtract selling costs - commission, title, escrow, transfer tax, recording and disclosure fees - plus prep costs and any buyer credits negotiated after inspection.
How much do sellers typically net after selling in California?
After commission and closing costs, California selling costs generally run about 7 to 9 percent of the sale price. Your net also depends heavily on your remaining mortgage balance, so the percentage you keep varies widely.
Will I owe capital gains tax on my home sale?
Many sellers of a primary residence qualify for a significant capital gains exclusion, but it depends on your situation. This is a question for a tax professional, not your real estate agent.
How do I get an accurate payoff balance for my mortgage?
Request a payoff statement directly from your lender. It reflects remaining principal plus accrued interest through the closing date, which is more accurate than your last monthly statement balance.
