Downsizing Net Proceeds Projection
Calculator
Results
- Capital freed by downsizing
- $114,700.00
- Invested capital
- $251,321.82
- Total benefit
- $208,621.82
- Cumulative savings
- $72,000.00
How the position develops over the projected years
- Invested capital
- Total benefit
- Cumulative savings
Year-by-year property projection
| 1 | 119,288.00 | 3,600.00 | 8,188.00 | 4,588.00 |
| 2 | 124,059.52 | 7,200.00 | 16,559.52 | 4,771.52 |
| 3 | 129,021.90 | 10,800.00 | 25,121.90 | 4,962.38 |
| 4 | 134,182.78 | 14,400.00 | 33,882.78 | 5,160.88 |
| 5 | 139,550.09 | 18,000.00 | 42,850.09 | 5,367.31 |
| 6 | 145,132.09 | 21,600.00 | 52,032.09 | 5,582.00 |
| 7 | 150,937.38 | 25,200.00 | 61,437.38 | 5,805.28 |
| 8 | 156,974.87 | 28,800.00 | 71,074.87 | 6,037.50 |
| 9 | 163,253.86 | 32,400.00 | 80,953.86 | 6,278.99 |
| 10 | 169,784.02 | 36,000.00 | 91,084.02 | 6,530.15 |
| 11 | 176,575.38 | 39,600.00 | 101,475.38 | 6,791.36 |
| 12 | 183,638.40 | 43,200.00 | 112,138.40 | 7,063.02 |
| 13 | 190,983.93 | 46,800.00 | 123,083.93 | 7,345.54 |
| 14 | 198,623.29 | 50,400.00 | 134,323.29 | 7,639.36 |
| 15 | 206,568.22 | 54,000.00 | 145,868.22 | 7,944.93 |
| 16 | 214,830.95 | 57,600.00 | 157,730.95 | 8,262.73 |
| 17 | 223,424.19 | 61,200.00 | 169,924.19 | 8,593.24 |
| 18 | 232,361.15 | 64,800.00 | 182,461.15 | 8,936.97 |
| 19 | 241,655.60 | 68,400.00 | 195,355.60 | 9,294.45 |
| 20 | 251,321.82 | 72,000.00 | 208,621.82 | 9,666.22 |
Comparison
| Scenario | Total benefit | Invested capital |
|---|---|---|
| Doing nothing | 0.00 | 0.00 |
| Your scenario | 208,621.82 | 251,321.82 |
Formula
freed = V(1−s) − B − P_new(1+b) − moving; capital_y = freed(1+r)^y= 114700.00
Note
This is a simplified projection model. It compounds the growth, cost and return rates you enter at a constant annual rate and amortizes mortgages on a standard fixed-rate annuity; real property markets, rents, interest rates, vacancy, maintenance and running costs move irregularly and can fall as well as rise. Taxes are applied only as the flat rate and allowance you enter: stamp duty and other transfer taxes are usually banded, capital gains relief, principal-residence exemptions, rental-income tax, depreciation and allowable expenses vary by country and by your circumstances and are not modelled here. Transaction, legal, letting and selling costs are taken as the percentages you supply. Baseline comparisons hold the alternative flat and ignore what else the money might have done. These results are general information, not investment, mortgage, tax or legal advice: consult a qualified professional before committing to a property decision.
More in Property projections
See all →Frequently asked questions
What does 'net proceeds' from downsizing actually include?+
It's the sale price of your current home, minus the outstanding mortgage balance, minus selling costs (agent commissions, closing costs), minus the purchase price and buying costs of the smaller home you're moving into. What remains is the cash freed up by the move.
Why is the mortgage payoff amount not the same as what I originally borrowed?+
Because you've been paying down principal over the years you've owned the home, the current payoff balance is lower than the original loan amount — the exact figure depends on your loan's amortization schedule and any extra payments made, so it should reflect your current balance, not the original one.
Does the calculator account for capital gains tax on the sale?+
It should if you're using it to plan real net cash — a taxable gain on the sale of the larger home can meaningfully reduce net proceeds, though many jurisdictions offer an exclusion on gains from a primary residence up to a certain threshold. Check whether that exclusion applies to your situation.
What one-time costs of moving itself should I factor in beyond real estate fees?+
Moving costs, any renovation needed in the new smaller home, temporary housing if the sale and purchase don't align perfectly, and new furniture sized for a smaller space are all common costs that reduce the actual cash benefit of downsizing beyond the headline real estate numbers.
Is the freed-up cash from downsizing typically meant to be invested or spent?+
That depends on your goals — some retirees invest the net proceeds to supplement retirement income via drawdown, others use it to eliminate debt, and some spend part of it directly. The calculator shows how much cash is freed up; what you do with it is a separate planning decision.