Downsizing Calculator
Work out the cash released by selling and buying somewhere cheaper, after every transaction cost, plus the annual saving on running costs.
Are you a real estate agent or broker? Agents use this to answer a buyer question and capture the buyer in the same link: one page, your branding, WhatsApp enquiries. Create free agent page →
Downsizing is usually described as releasing the difference between two prices. The real figure is considerably lower, because selling costs, buying costs and moving all come out of that difference before anything reaches you.
The ongoing saving matters as much as the lump sum. A smaller property with lower tax, heating and maintenance can save a meaningful amount every year, and over a long retirement that stream is frequently worth more than the capital released.
The calculation
Net from the sale = sale price − mortgage owed − selling costs. Cash released = that net, less the new property price and its buying costs. The running-cost saving is separate and continues every year.
Worked example
Selling at 600,000 with 120,000 owed and 5% selling costs of 30,000 nets 450,000. Buying at 380,000 with 4% buying costs of 15,200 takes 395,200, releasing 54,800 — not the 220,000 the price difference suggests. Saving 350 a month on running costs adds 4,200 a year, so over ten years the move is worth about 96,800.
Transaction costs make small moves pointless
On these figures the move costs 45,200 in fees and taxes alone. A downsize that releases only a little more than that is difficult to justify financially, though it may still be right for reasons of location, access or maintenance.
One page per property, ready in minutes
Photos, price, location, the documents a buyer asks for, and this calculator — on a page you can send in a single link. No website build, no coding.
Create your free property pageFrequently asked questions
How much does downsizing typically release?
Far less than the price difference, because selling and buying costs commonly consume seven to ten percent of the two prices combined. On a modest downsize those costs can absorb most of the apparent gain.
Should I clear the mortgage with the proceeds?
Usually yes if the mortgage rate exceeds what the money would safely earn, particularly on a fixed income. Check for early-repayment charges first, since they can outweigh the interest saved.
Is the running cost saving significant?
Often more than people expect. Property tax, heating, insurance and maintenance all scale with size and value, and a saving of a few hundred a month compounds into a substantial sum across a long retirement.
More owning calculators
Seller net proceeds
The cheque you actually receive after every deduction.
OwningSecond home running cost
The annual cost, and the cost of each night you stay.
BuyingClosing costs
Total cash to complete, not just the deposit.
OwningHome equity
What you own outright, and what could be borrowed against it.
OwningRenovation return
Whether the work adds more value than it costs.
OwningProperty appreciation
Future value, and what it is worth in today money.
OwningRebuild cost for insurance
Insure for what it costs to rebuild, not what it sells for.
OwningEnergy upgrade payback
How long an efficiency upgrade takes to pay for itself.
OwningSolar payback
What solar saves, and when it pays for itself.
OwningHeating cost comparison
Which heating system actually costs less to run.
OwningProperty tax estimate
The annual charge, from assessed value and local rate.
OwningRolled-up interest
How a released sum grows when nothing is repaid.