What are seller net proceeds?
Estimated seller net proceeds are the entered sale price less seller-paid selling costs, applicable taxes on those fees, secured-debt payout, adjustments and other included deductions. Define the estimate’s scope before using it. A comparison sheet is not the lawyer’s or notary’s final statement of adjustments.
The Offer Comparison and Net Proceeds workbook uses a separate column for each offer so you can see which price and cost assumptions produce each result. It does not calculate income tax, capital gains tax or non-resident withholding. Those can materially affect what the seller ultimately keeps and need their own advice.
Start with a clear calculation and source record
Estimated net proceeds = price − commission − tax on commission − legal or notary costs − secured-debt payout − separate discharge costs − adjustments − other included costs.
List what each input includes, where the figure came from and when it was checked. The FCAC’s selling-a-home guidance identifies costs to consider, including professional fees and possible mortgage prepayment penalties. Ask the actual provider for the quote relevant to this transaction.
If there is a mortgage and a drawn HELOC or another secured balance, make sure the total payout input includes every relevant amount once. A single lender statement can combine components, so do not count both a combined total and its component balances.
A complete fictional Ontario example
| Line | Amount |
|---|---|
| Offer price | $835,000.00 |
| Less negotiated commission at 4% | $33,400.00 |
| Less Ontario HST on that commission at 13% | $4,342.00 |
| Less legal or notary estimate, including applicable tax | $2,000.00 |
| Less mortgage principal payout | $400,000.00 |
| Less separate discharge penalty or fees | $3,500.00 |
| Less property tax adjustment | $650.00 |
| Less other entered costs | $0.00 |
| Estimated net proceeds | $391,108.00 |
The $50,000 fictional deposit is not another deduction from the $835,000 price. It is part of that price. Its receipt, trust handling and use at closing are separate questions from estimating total net proceeds.
The 4% commission is an invented agreement for this example, not a standard or required rate. The workbook supplies no default commission rate in the blank buyer file.
Keep commission and its tax on the right base
Use the total seller-paid commission before tax required by the actual agreement, rather than one agent’s portion. If the agreement has tiers, calculate the agreed total and enter that dollar amount. In the workbook, the dollar override takes precedence over a percentage, including a deliberate $0.
Commission tax is calculated on the commission, not on the sale price. CRA explains GST/HST treatment for agents’ commission and related services; its current rate calculator identifies provincial and territorial GST/HST rates. The property sale’s own tax treatment does not determine the tax on every professional fee.
As of this guide’s October 18, 2026 review, Nova Scotia’s HST rate is 14%, not the older 15% figure. Separate provincial taxes may also apply to commission. Review the workbook’s dated source table and confirm current property classification, exemptions and treatment before presenting a real estimate.
Make the sign and inclusion rules explicit
A positive property tax adjustment in this workbook reduces proceeds. A negative amount adds a credit. That is the spreadsheet’s input convention; use the lawyer’s or notary’s confirmed amount and sign when it becomes available.
Enter legal, penalty and other cost inputs as all-in amounts including their own applicable taxes. Commission taxes have their own calculation rows, so enter commission before tax there. If a fee is included in another quote, keep a note and exclude the duplicate entry.
A blank cost means an estimate still needs work. Enter zero only after checking that no amount applies. This is especially useful when offers have different dates: confirm whether payout interest, adjustments or other charges change instead of copying a convenient number into every column.
Compare the same cost scope across the offers
| Offer | Price | Estimated net | Net rank |
|---|---|---|---|
| Maple | $850,000 | $365,825.00 | 3 |
| Cedar | $835,000 | $391,108.00 | 1 |
| Birch | $842,000 | $388,034.30 | 2 |
These offers have different negotiated commission and other entered costs. Cedar’s estimate is $25,283 higher than Maple’s despite its lower price. The example demonstrates why a multiple-offer comparison needs a consistent cost schedule. It does not promise savings or describe a typical sale.
Show equal net values as equal rather than inventing a financial winner. Then review deposits, clauses, dates and other material terms with the seller before discussing a direction.
Explain what the estimate leaves out
Separate transaction net proceeds from the seller’s wider moving budget. Moving, temporary accommodation, repairs or the next purchase may need additional planning unless you have specifically included them. The estimate does not establish tax liability, eligibility for an exemption or the final amount released on closing.
Confirm all figures with the lawyer/notary before presenting them as reliable for a transaction. Label early numbers as estimates and revise the worksheet when actual quotes arrive. For an earlier homeowner planning conversation, our home equity versus sale proceeds guide explains the difference between equity and cash after selling costs.