Net Equity Calculator

Determine your available equity for 1031 exchange reinvestment

Calculate the actual cash you'll have available after your property sale. This is the foundation of your 1031 exchange planning-knowing your net equity determines your minimum replacement property requirements.

Property Sale Information

Start with your expected sale price and outstanding mortgage balance

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$

Closing Costs & Commissions

Estimate all costs that will be deducted from your sale proceeds

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$

Typically 0.5-1% of sale price

$

Varies by location (0-2% of sale price)

$

Typically $500-2,500

Additional Deductions

Include any other amounts that will reduce your net equity

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$
$
$
$

Net Equity Available for Exchange

$0
Gross Equity (Before Costs)$0
Total Deductions-$0

Net Equity %

0.0%

Closing Costs %

0.0%

Key Points to Remember

  • *Accurate net equity calculation is critical-this amount determines your minimum replacement property value in a 1031 exchange.
  • *Request a net sheet from your real estate agent or title company for precise closing cost estimates.
  • *Your net equity must be fully reinvested to defer 100% of capital gains taxes.

Tips for Maximizing Your Net Equity

  • *Negotiate commission rates - Consider 5% total commission or tiered structures for higher-priced properties
  • *Shop title insurance rates - Prices vary between providers; compare quotes to save hundreds or thousands
  • *Handle minor repairs yourself - Avoid seller concessions by addressing issues before listing
  • *Review closing costs carefully - Question every line item; eliminate unnecessary fees
  • *Pay off small liens early - Avoid rush payoff fees by clearing liens before listing

Why Accurate Net Equity Calculation Matters

Your net equity is the cornerstone of 1031 exchange planning. This amount determines:

  • *Minimum replacement property value - You must purchase property worth at least your net equity to defer all capital gains taxes
  • *Financing requirements - Understanding your equity helps you plan for additional financing needs
  • *Property search parameters - Knowing your available funds focuses your replacement property search
  • *Exchange feasibility - Low net equity may require creative financing or partnership structures

A precise net equity calculation prevents last-minute surprises and ensures you identify replacement properties that meet IRS requirements.

Ready for the Next Step?

Now that you know your net equity, use our Replacement Property Target Calculator to determine what properties you need to purchase to complete your 1031 exchange successfully.

Calculate Replacement Property Needs