How to Calculate Net Proceeds

When you make a sale, one of the first things you wonder is how much money you truly made. Whether you are selling items in a garage sale, a car, a business or a home, calculating proceeds is done in the same manner. You can calculate proceeds by having the amounts of your sale and the total expenses you incurred during the sale.

Step 1

Write down the amount of money you received in hand for the sale of your product or service.

Step 2

Compute all the expenses you incurred as a result of the sale. These expenses can include the price of the item, the cost of providing the service, the amount it cost to advertise and travel to sell the item and any other expenses you incurred. Add all these expenses together for your total cost. Write this number underneath the amount you received in hand for the sale.

Step 3

Subtract the total cost for your sale from the total amount you received for the sale. This final number is the total proceeds.

Things You'll Need

  • Sale amount

  • Expenses of the sale

references & resources