Free · Mortgage and real estate calculators 🏠

Property Sale Commission, VAT & Proceeds Calculator

Apply an entered commission rate and tax on that commission to estimate proceeds before other closing costs.

  • Formula & worked example
  • Private in your browser
  • No signup
Go to tool

Calculator inputs

Loading calculator…

How to use this calculator

  1. Enter the known values in the units shown. Results update as you type.
  2. Where results are editable, change one to solve backwards. Lock a value to hold it fixed.
  3. Use the worked example to check the method. Reset restores the starting fields.

Use the result with context

Results are estimates for planning and education. Confirm rates, taxes, fees, and legal requirements with the relevant institution or a qualified professional before making a financial decision.

Formula and method

For a sale price of 100,000, a 2% commission is 2,000 before tax. An entered 20% VAT rate on the commission adds 400, leaving 97,600 before other sale costs.

Net commission = sale price × commission rate; commission tax = net commission × tax rate; proceeds = sale price − net commission − commission tax

Worked example

Enter these known values and leave the other values blank.

Property sale price
100000 USD
Commission rate on sale price
2 %
Entered VAT rate on commission
20 %
Commission including VAT
2400 USD
Proceeds before other sale costs
97600 USD
Commission before VAT
2000 USD
VAT on commission
400 USD

Assumptions and limitations

  • The rate is supplied by you. This tool does not determine the applicable jurisdiction, taxable base, exemptions, recoverability or invoice-rounding rules.
  • The commission is a percentage of the whole sale price, with the entered VAT rate applied only to that commission. A quoted tax-inclusive commission must first be interpreted correctly.
  • For an ordinary sale use nonnegative sale price, commission and tax assumptions. Loan payoff, transfer taxes, legal fees, other closing costs and negotiated fee structures are excluded. This is not a final settlement statement.

Common questions

Is VAT applied to the property price here?

No. The formula applies the entered VAT rate to the commission amount only.

Is the displayed amount my final take-home cash?

No. It is the sale price less this modeled commission and its tax. Other sale costs and any outstanding debt still need to be accounted for.

References

The calculation equations, inverse formulas, units, and input rules were imported from this source. Bookify provides the interface and equation solver.

Explore mortgage and real estate calculators 🏠 or browse all finance calculators.