SAM HOME TOOLS · REFERENCE

Calculator Methodology, Assumptions & Limitations

Updated October 4, 2026 · SAM Home Tools

SAM Home Tools provides an educational estimate of US seller cash proceeds using figures entered by the user. It does not retrieve listing data, lender quotes, tax rates, or closing charges.

The formula

Commission equals the offer price multiplied by the entered commission percentage. Calculations use integer cents. Commission is rounded to the nearest cent before deductions are summed. Displayed proceeds retain cents when needed; the detailed report always shows cents.

Input and comparison rules

• Currency is US dollars. Amounts must be nonnegative, with at most two decimal places. The percentage must be between 0% and 100%.
• Blank deduction fields mean zero. No price means an offer is not calculated or ranked.
• Offers with invalid entered numbers do not produce an estimate. The report button is disabled while a calculated offer contains an error.
• Each deduction is subtracted once. Users must avoid entering the same cost in multiple categories.
• Negative proceeds are shown when entered deductions exceed the price. This may indicate additional funds needed to close.
• Highest-net labels compare estimated proceeds only. Equal results are labeled as tied.
• Funding, dates, and contingencies are descriptive inputs. They do not adjust the formula or generate a risk score.

Example you can reproduce

For a $500,000 sale, $280,000 mortgage payoff, an illustrative 4% agreed commission, $8,000 seller concessions, and $5,000 other deductions: commission = $20,000; deductions = $313,000; estimated proceeds = $187,000. The 4% rate and other figures are examples, not suggested or typical charges.

What is not included automatically

No property valuation, ZIP-code adjustment, tax-table lookup, commission recommendation, or allocation of customary fees is made. Local charges and your contractual obligations must be entered by you.

The tool does not calculate purchase basis, capital-gains tax, exclusions, withholding, legal rights, escrow refunds, credits paid back to the seller, earnest-money distributions, expenses paid outside closing, moving costs, or future housing costs. Consequently, it is not a prediction of a final settlement wire, profit, or taxable gain.

Figures and professional review

Use your executed agreements, current lender payoff quote, and transaction-specific settlement estimates. Confirm final figures with your agent, lender, and settlement provider. Consult qualified tax or legal professionals where needed. The tool and its content are not a substitute for individualized advice.

Reference material

• Consumer Financial Protection Bureau: Closing Disclosure explainer — cost categories in a mortgage closing document, primarily for borrowers.
• IRS Publication 523: Selling Your Home — gain, basis, and possible exclusions, which this calculator does not calculate.

These references are provided for context. Neither agency endorses this tool. The tool’s arithmetic is defined above, not supplied by either agency.

Privacy and version

Offer figures stay in the browser. There are no accounts, lead forms, financial-data uploads, or saved input records. Printed reports are generated on the user’s device. See privacy and terms.

Calculation model version 1.0. Content reviewed October 4, 2026. Updates to this methodology should accompany changes to the calculation model.