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Capital Gains Calculator on Home Sale

Wondering how much tax you might owe after selling your home? The Capital Gains Calculator on Home Sale helps you estimate the profit from your home sale and calculates potential capital gains taxes—so you can plan ahead and maximize your after-sale earnings.



Capital Gains Calculator

Results

Capital Gain: $0

Exclusion Applied: $0

Taxable Gain: $0

Estimated Tax (15%): $0

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What is Capital Gains Calculator on Home Sale

The Capital Gains Calculator on Home Sale is a financial tool that estimates how much profit you’ll make from selling a property and how much of that profit may be subject to capital gains tax. It factors in your home’s original purchase price, selling price, improvements made, ownership duration, and applicable exemptions

This tool is especially helpful for homeowners, real estate investors, and anyone preparing to sell a primary residence or second property. It aligns with IRS capital gains rules, including the Section 121 exclusion, which allows individuals to exclude up to $250,000 (or $500,000 for married couples) of profit on the sale of their primary residence under specific conditions.




How it works

Capital Gains Calculator on Home Sale

To use the calculator, input your original purchase price, home sale price, costs of improvements, closing costs, and how long you’ve owned and lived in the property. The calculator subtracts your adjusted cost basis (purchase price + improvements + selling costs) from your sale price to calculate your gain. It then applies relevant tax rules to estimate how much of that gain is taxable.

For instance, if you bought a home for ₹60 lakhs, spent ₹10 lakhs on renovations, and sold it for ₹1.2 crores, your capital gain might be ₹50 lakhs. If it’s your primary residence and you meet ownership and use tests, a portion or all of that gain could be tax-free under U.S. IRS rules. The tool gives you a quick view of what’s taxable and what you get to keep—so you’re not caught off guard at tax time.



Frequently Asked Questions

What qualifies for the capital gains exclusion on home sale Toggle
To qualify, you must have owned and lived in the home as your primary residence for at least 2 of the last 5 years before selling.
How much of my home sale gain is tax-free Toggle
Up to $250,000 for single filers and $500,000 for married couples filing jointly—if the home was your primary residence and you meet eligibility rules.
Are home improvements included in the cost basis Toggle
Yes. Capital improvements that increase your home’s value (like a new roof, kitchen remodel, or room addition) can be added to your original purchase price to reduce taxable gain.
What if I’m selling an investment or rental property Toggle
The capital gains exclusion only applies to primary residences. Investment or rental properties are subject to full capital gains taxation, possibly including depreciation recapture..
Does this tool give exact tax results Toggle
It provides an accurate estimate based on the numbers you enter and current tax rules. For precise tax filing, it’s best to consult a tax advisor.