How to Calculate Net Sale Price

Paying expenses in a selling transaction reduces the net sale price.

Net sale price is the amount of the sales price a seller will receive. The net sale price subtracts any related expenses from the gross sale price. People use net sale price in a variety of transactions, such as selling a house. There is the sales price of the house and then expenses such as listing and real estate agent fees, which are deducted from the sales price to determine the net sale price.

Instructions

1. Determine how much the item was sold for to another person. For example, a person sells a bicycle at a friend's garage sale. In return for selling the bike, he tells his friend he will pay him 5 percent of the selling price. The bicycle sells for $120.

2. Determine any expenses related to selling the item. In our example, the person promised a 5 percent commission for selling the bicycle. Therefore, $120 times 5 percent equals $6 in commission.

3. Subtract from the sales price any related expenses to determine the net sale price. In our example, $120 minus $6 equals a $114 net sale price.

References

• Accounting Coach: Selling Expenses
• Accounting Coach: Net