Home Sale Profit Calculator

Formula

To calculate the Home Sale Profit:

\[ Phs = (SP - PP) - \frac{SP \times TR}{100} \]

Where:

$Phs$ is the Home Sale Profit (\$)
$PP$ is the Purchase Price of the home (\$)
$SP$ is the Sale Price of the home (\$)
$TR$ is the Tax Rate on sale (\%)

What is Home Sale Profit?

The Home Sale Profit is the amount of money you make from selling your home after accounting for the purchase price and any taxes on the sale. It is an important metric for homeowners to understand their financial gain from a property transaction.

Example Calculation 1

Let's assume the following values:

Purchase Price ($PP$) = $200,000
Sale Price ($SP$) = $250,000
Tax Rate ($TR$) = 5%

Using the formula:

\[ Phs = (250,000 - 200,000) - \frac{250,000 \times 5}{100} = 50,000 - 12,500 = 37,500 \, \text{\$} \]

The Home Sale Profit is $37,500.

Example Calculation 2

Let's assume the following values:

Purchase Price ($PP$) = $300,000
Sale Price ($SP$) = $350,000
Tax Rate ($TR$) = 7%

Using the formula:

\[ Phs = (350,000 - 300,000) - \frac{350,000 \times 7}{100} = 50,000 - 24,500 = 25,500 \, \text{\$} \]

The Home Sale Profit is $25,500.