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Net Proceeds at Sale Calculator

BC Net Proceeds at Sale Calculator

Last reviewed by Bronson Job, REALTOR®Sources: BC.gov.ca, CRA, BCFSACC BY 4.0How we verify

Most BC sellers think their cheque is sale price minus mortgage. The real number is 5-8% lower once commission, GST on commission, prepayment penalty, and proration are honest. On a $1.5M Cloverdale detached, that gap is $90,000-$120,000. This calculator pulls every line item — including the BC Home Flipping Tax if you held under two years — into one defendable bottom-line number.

Commission is “7% on the first $100,000 and 2.5% on the balance” only because it’s a habit. Every BCFSA-licensed brokerage will quote different rates if you ask.
— Standard BC residential listing-agreement appendix

Calculate

Tax treatment
BC Home Flipping Tax (if held under 2 years)

BC Home Flipping Tax applies if you held the property under 730 days. 20% rate on profit if held under 365 days; phases out linearly to 0% at 730 days. Owner-occupiers can deduct up to $20,000 if held ≥365 days. Files separately from your income tax — see /codex#bc.flipping_tax.

Trust-account cheque (what hits your bank)
$747,100
Sale price
$1,500,000
Less: mortgage payout (balance + penalty)
−$705,000
Less: realtor commission
−$42,000
Less: GST on commission (5%)
−$2,100
Less: legal / notary
−$800
Less: tax / strata / utility adjustments
−$1,500
Less: marketing
−$1,500

Estimate only. Your notary’s trust statement is binding. The capital-gains tax above is paid via your T1 return for the year of disposition (April of the following year), not at completion — but it’s the true bottom-line number for budgeting your next purchase.

Reproduce this number9 steps
StepAmount
Sale price$1,500,000.00
Less: mortgage balance payout-$700,000.00
Less: prepayment penalty (3-month interest OR IRD; ask lender)-$5,000.00
Less: realtor commission (BC default 7% / 2.5%; negotiable)-$42,000.00
Less: GST on commission (5%)-$2,100.00
Less: legal / notary discharge fee-$800.00
Less: property-tax / utility / strata adjustments to buyer-$1,500.00
Less: marketing costs (staging, photos, ads)-$1,500.00
Trust-account cheque (what hits your bank)$747,100.00
Total$747,100.00

Computed from the BC Real Estate Codex · CC BY 4.0

Worked example — White Rock detached, $2.4M, principal residence, 8 years

A White Rock detached selling at $2,400,000 with a $900,000 mortgage outstanding (variable, $4,500 prepayment penalty). BC default commission is $64,500 (7% × $100K + 2.5% × $2.3M). GST on commission is $3,225. Legal $800, adjustments $2,000, no marketing. Held 8 years as principal residence — no BC Flipping Tax, no capital-gains tax.

Trust-account cheque: $1,424,975. The seller anchored on $2.4M − $900K = $1.5M. The real number is $75,025 lower. Of that gap, commission + GST is the lion’s share ($67,725) — bigger than the prepayment penalty, legal, and adjustments combined.

Now flip it: same property, NOT a principal residence (rental held 8 years, ACB $1.6M). Gross gain $730K, taxable gain $365K (50% inclusion), at 40% marginal: $146,000 tax. After-tax net proceeds drop to ~$1.28M. The BC seller who treats sale price minus mortgage as a planning anchor is roughly $200,000 off in this scenario.

Related

Bronson Job, REALTOR®
Bronson JobREALTOR® · GVR Member #6015742 · FVREB Member #FJOBBR
Verified sources (2)Click to expand

Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.

Fact ID: bc.flipping_tax · v1View in Codex →
Spot an issue? Report an inaccuracy · How we verify
Verified sources (2)Click to expand

Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.

Fact ID: ca.capital_gains.inclusion_rate · v2View in Codex →
Spot an issue? Report an inaccuracy · How we verify
Verified sources (1)Click to expand

Every claim on this page is sourced to a primary government, regulator, or industry-association URL. We re-verify quarterly; the verification dates below show when each source was last confirmed against the live government page.

Fact ID: ca.anti_flipping_rule · v1View in Codex →
Spot an issue? Report an inaccuracy · How we verify