How the gain on sale calculator works
Capital gain on a property sale equals the sale price minus your adjusted basis. This calculator solves for gain or loss, required sale price, or adjusted basis. It is a pre-tax planning tool and does not apply federal brackets, exclusions, or depreciation recapture. All math runs in your browser.
Adjusted basis reflects purchase price, capital improvements, and accumulated depreciation. To track book depreciation, use the accumulated depreciation calculator. For broader capital gain estimates on investments, open the capital gains calculator. If you are flipping homes, pair this with the after repair value calculator to model resale profit before sale.
Gain on sale formula
Adjusted basis is typically original cost plus improvements minus accumulated depreciation. A negative result is a capital loss, subject to IRS limits and holding-period rules.
Worked example: $400,000 sale, $310,000 adjusted basis
- Sale price: $400,000
- Adjusted basis: $310,000
- Gain on sale: $400,000 - $310,000 = $90,000
Tax owed depends on holding period, income, and whether Section 121 or 1031 rules apply. Consult a tax professional before filing.
Frequently asked questions
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Does this calculator include depreciation recapture?
Can I solve for the sale price I need to hit a target gain?
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Resources and references
The formulas and methods in this calculator were checked against these independent sources.