What this calculator answers
Your equity is the sale price minus what you owe, but the cash you actually receive is smaller. Commission and the GST on it, legal fees, the mortgage payout, any prepayment penalty and the discharge fee all come off before your lawyer sends you the balance. This calculator lays that out line by line, so you know what you can put toward your next home.
How the calculation works
- Commission is calculated on the sale price. With two tiers, the first rate applies up to the first amount and the second rate to the rest.
- GST is added to the commission at the rate you set (5% in Alberta).
- The mortgage payout is the balance you enter plus any penalty and discharge fee. The penalty can be an estimate of three months' interest (balance times rate times 3/12) or your lender's quote.
- Net proceeds = sale price minus commission, GST, legal fees, mortgage payout, penalty, discharge fee and other costs.
Assumptions and limits
- Commissions are not regulated. The default two-tier rate is a common example only, and is negotiable.
- Penalties are lender policy and set by your contract. Three months' interest is the usual minimum; a fixed-rate interest rate differential can be higher. Porting your mortgage to the next home can avoid the penalty with some lenders.
- Discharge and legal fees shown are examples. Use your lender's and lawyer's figures.
- Property tax, condo fee and utility adjustments, and interest to the closing date, are not included unless you enter them.
- Taxes on the gain are not included. Most principal residences are sheltered; check with a tax professional if the home was ever rented or used for business.
Common questions
Is GST charged when I sell my house?
Not on the price of a used home you lived in, in most cases. GST is charged on the real estate commission, so a $20,000 commission costs $21,000 in Alberta.
Do I pay a penalty if I sell before my mortgage term ends?
Usually, unless your mortgage is open, your term is ending, or you port the mortgage to your next home. Ask your lender for a payout statement for your closing date; it shows the penalty, discharge fee and interest owing.
When do I get the money from my sale?
Your lawyer receives the funds on closing day, pays out the mortgage and the commission, and sends you the rest, usually the same day or shortly after.
Can I use the proceeds as my down payment?
Yes. If your purchase closes before your sale, bridge financing can cover the gap. The bridge financing calculator estimates the cost.
Sources
- FCAC: prepayment penalties (rules checked 2026-10-31)