If I Sell My House for $500,000, How Much Do I Keep?
A $500,000 sale price doesn't mean $500,000 in your bank account. Commission, closing costs, and whatever you still owe on your mortgage all come off first. For most sellers, what's actually left after a $500,000 sale falls somewhere between $430,000 and $470,000 before the mortgage payoff — and the mortgage payoff itself is usually the single biggest factor in what you keep.
On a $500,000 sale, commission (national 2026 average around 5.7%) and closing costs (typically 1%–3%) commonly total $34,000–$43,000 before your mortgage payoff is subtracted. If you have no mortgage left, you'd keep roughly $457,000–$466,000. If you still owe $300,000, you'd keep closer to $157,000–$166,000. Your mortgage balance matters more than any other single factor — see the scenario breakdown below for your specific range.
The Formula Behind the Number
Net Proceeds = Sale Price − Mortgage Payoff − Agent Commissions − Closing Costs − Seller Credits or Repairs
On a $500,000 sale, two of these variables are fairly predictable nationally — commission and closing costs. The other two, mortgage payoff and any credits you agree to, depend entirely on your situation. That's why the honest answer to "how much will I keep" is a range, not a single number, until you plug in your own mortgage balance.
Commission on a $500,000 Sale
At the 2026 national average total commission of roughly 5.7%, commission on a $500,000 sale comes to about $28,500, typically split between the listing agent and buyer's agent.[1] Because commission is negotiable and not fixed by law or MLS rule, this figure moves directly with whatever rate you negotiate — a 5% total commission would be $25,000, a 6% total would be $30,000.
Closing Costs on a $500,000 Sale
Excluding commission, seller-side closing costs — title insurance, transfer taxes, escrow fees, prorated property taxes — typically run 1%–3% of the sale price, which comes to roughly $5,000–$15,000 on a $500,000 home.[2] Where you live changes this significantly: some states charge no transfer tax at all, while others add several thousand dollars on top of the baseline costs.
How Your Mortgage Balance Changes the Answer
This is the variable that moves your actual take-home the most. Here's the same $500,000 sale with a 5.7% commission ($28,500) and an example 2% closing cost figure ($10,000) held constant, shown across a range of mortgage balances.
So what? Commission and closing costs stay fixed at roughly $38,500 in this example regardless of your mortgage. Every dollar of mortgage balance comes straight out of your proceeds on top of that. A seller with a $400,000 mortgage on a $500,000 sale — 80% loan-to-value — keeps only about 12% of the sale price. A seller who owns the home outright keeps more than 92%. The sale price is identical in every row; the outcome isn't.
Use your mortgage payoff amount, not your last statement balance. Your payoff figure includes interest accrued since your last payment and is typically higher than the balance shown on your most recent mortgage statement. Request an official payoff quote from your lender before estimating.
Worked Example: $500,000 Sale, $220,000 Mortgage
Here's a full breakdown for a seller with a specific, realistic mortgage balance, including an example seller credit.
In this example, the seller has $280,000 of equity ($500,000 minus the $220,000 mortgage) but nets $237,500 — about $42,500 less than their equity, consumed by commission, closing costs, and the buyer concession.
What Could Change This Estimate
- Your actual commission rate. Every 0.5% shift in total commission moves the number by $2,500 on a $500,000 sale.
- Your state's transfer tax. Zero in some states, thousands of dollars in others — this is often the largest source of variation in the closing cost line.
- A second mortgage or HELOC balance, which is subtracted alongside your primary mortgage payoff.
- Buyer concessions negotiated after inspection. These aren't part of the original contract price but do reduce proceeds.
- Whether you owe capital gains tax. Most sellers don't, since the federal exclusion covers up to $250,000 of gain for single filers and $500,000 for joint filers on a primary residence — but this depends on your original purchase price and gain, not your sale price.[3]
Common Mistakes on a $500,000 Sale
- Treating $500,000 as the take-home number. It's the sale price, not the proceeds — the gap is often $30,000–$40,000 before the mortgage is even subtracted.
- Forgetting the mortgage payoff includes accrued interest. Your real payoff is usually higher than your last statement.
- Assuming a flat 6% commission. Recent data puts the national average closer to 5.7%, and it's negotiable in every transaction.[1]
- Not checking your state's transfer tax. This single line item explains much of the difference between a seller's estimate and their actual closing disclosure.
Get Your Exact Number
These figures use national averages. Enter your actual mortgage balance, commission rate, and state to see your specific estimate.
Try the Proceeds IQ Seller Net Proceeds CalculatorFrequently Asked Questions
How much do I keep from a $500,000 house sale with no mortgage?
With no mortgage remaining, you'd keep roughly $457,000–$466,000 after a typical 5.7% commission and 1%–3% closing costs — the full range depends on your specific commission rate and local closing costs.
How much is commission on a $500,000 house?
At the 2026 national average of about 5.7% total commission, that's roughly $28,500, typically split between the listing agent and the buyer's agent. The rate is negotiable and varies by market and agent.
Will I pay capital gains tax on a $500,000 home sale?
Most sellers won't, because the tax applies to your gain (sale price minus what you originally paid and qualifying improvements), not your sale price. If you owned and lived in the home for at least two of the past five years, you can exclude up to $250,000 of gain as a single filer or $500,000 as a joint filer.[3]
What's the biggest factor in how much I'll actually keep?
Your remaining mortgage balance. Commission and closing costs together typically total 7%–9% of the sale price and don't vary much between sellers at the same price point — but mortgage balances vary enormously, and that's usually what separates a seller who keeps most of the sale price from one who keeps very little.
The Bottom Line
On a $500,000 sale, expect commission and closing costs to take roughly $34,000–$43,000 before anything else is subtracted. What you keep after that depends almost entirely on your mortgage balance — the gap between owning the home outright and owing $400,000 on it is the difference between keeping over 90% of the sale price and keeping barely more than 10%. Pull your actual mortgage payoff quote and run the real numbers rather than relying on the sale price alone.
Sources
- Clever Real Estate, "Average Real Estate Agent Commission Rates" (2026 nationwide agent survey)
- EffectiveAgents / American Land Title Association (ALTA) data on seller closing cost ranges and title insurance premiums
- Internal Revenue Service, "Tax considerations when selling a home" and IRS Topic No. 701, Sale of Your Home (irs.gov)
This article provides general educational information based on national averages. It is not individualized financial or tax advice. Your actual proceeds depend on your specific mortgage payoff, negotiated commission, state and local closing costs, and any credits or repairs agreed to during the transaction.
