Downsizing Financial Impact Calculator
Net cash released by downsizing your home.
Calculate the net cash released by downsizing including sale proceeds, new purchase, and transaction costs. Enter home sale price and see the result instantly.
What this tool does
Enter current home sale price, new home price, and estimated transaction costs. The tool shows net cash released.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Downsizing a 500,000 home to a 300,000 home gross releases 200,000 — but transaction costs bite. Estate agent 1.5% (7,500), legal 2,000, transfer tax on the new property (varies), moving 2,000, plus any new-home renovation. Net cash often ends up 10-15% less than the gross gap. Running the numbers before listing prevents surprises.
Run it with sensible defaults
Using current home sale price of 500,000, current mortgage balance of 0, new home price of 300,000, selling costs of 10,000, the calculation works out to 182,000.00. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.
The levers in this calculation
The inputs — Current Home Sale Price, Current Mortgage Balance, New Home Price, Selling Costs, and Buying Costs (incl. tax) — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.
How the math works
Net cash = sale proceeds minus mortgage paid off minus selling costs minus new home price minus buying costs. Can be negative if new home costs more than the equity released. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".
Using this to think, not predict
Financial plans are wrong by month six — new information arrives and reshapes the picture. The point of running projections isn't to be right in ten years; it's to be less wrong in the decision you're making this week.
What this doesn't capture
Real plans get re-run against new information every year or two. The result here is a reasonable direction, not a destination. Treat it as a starting point for thinking, not a commitment to a specific future.
Downsizing impact produces a net cash figure based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Net cash = sale proceeds minus mortgage paid off minus selling costs minus new home price minus buying costs. Can be negative if new home costs more than the equity released.
References
Frequently Asked Questions
What are typical transaction costs?
Is the released cash tax-free?
Does it always make financial sense?
What about renting after selling?
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