Reversion Value Calculator
In discounted-cash-flow valuation, the reversion is what the property will sell for at the end of the holding period, and its value today is the present value of those sale proceeds. Enter a forecast sale price, or the exit-year income and exit cap rate that produce one, then selling costs, years until sale, and a discount rate, and this calculator works the full chain: future value, less selling costs, discounted back to today. Pre-filled: a $600,000 sale in 5 years, 6% costs, 8% discount rate, worth $383,848.92 today.
Less selling costs:
Net future proceeds:
Discount factor:
Present value:
This is the present value of the sale proceeds before mortgage payoff and taxes. Selling costs are deducted from the future value first; the discount rate then brings the net proceeds back to today.
Quick Answer
Present value of reversion = net future proceeds ÷ (1 + discount rate)years, where net future proceeds = future sale value × (1 − selling costs ÷ 100). On the pre-filled example: $600,000 × 0.94 = $564,000 of net proceeds in 5 years, and $564,000 ÷ 1.085 = $383,848.92 today. Switch the mode picker to derive the same $600,000 future value from $48,000 of exit-year income at an 8% exit cap rate ($48,000 ÷ 0.08 = $600,000).
- Quick Answer
- How this reversion value calculator works
- The formula
- What “reversion” means, honestly
- Where your selling-cost percentage comes from
- Scenario table: what the discount rate and the cost percentage do to the answer
- Related calculations (worked)
- What most competing calculators miss
- Frequently asked questions
- Add This Calculator to Your Website
- References
How this reversion value calculator works
Pick how you know the future value. If you have a forecast sale price, enter it directly. If you have the property's income instead, enter the exit-year net operating income and the exit cap rate, and the tool derives the future value as NOI ÷ cap rate. Then enter total selling costs as a percentage, the years until sale, and the discount rate. Click Calculate: the tool shows the future sale value, the selling-cost amount, the net future proceeds, the discount factor, and the present value of the reversion. Results stay hidden until you click, and Reset restores the $600,000 sale example.
The formula
Net future proceeds = Future sale value × (1 − selling costs ÷ 100)
Discount factor = 1 ÷ (1 + discount rate ÷ 100)years
Present value of reversion = Net future proceeds × discount factor
On the pre-filled example: $600,000 × 0.94 = $564,000; 1 ÷ 1.085 = 0.680583; $564,000 × 0.680583 = $383,848.92. The discount factor is the whole story of the tool: a dollar of sale proceeds five years out at 8% is worth about 68 cents today, so pushing the sale later or raising the discount rate both shrink the present value even when the future price never moves.
What “reversion” means, honestly
The word has two meanings in investing, and this page now uses the discounted-cash-flow one. In DCF valuation, "reversion" is the projected sale value of the asset at the end of the holding period, and the reversion value an investor compares against today's price is that sale value discounted back to today. The transaction figure this page used to compute, sale price minus selling costs, is still in the chain, but as the middle step (net future proceeds), not the answer: $564,000 is what the sale yields in five years, while $383,848.92 is what that yield is worth today. For the exit math that includes an outstanding loan, the buy sell mortgage calculator factors the mortgage balance into the picture this tool leaves out: subtract the mortgage balance at sale from the net future proceeds, then apply the same discount factor.
Where your selling-cost percentage comes from
Residential sellers typically pay 6% to 10% of the sale price in total selling costs. The agent commission is by far the largest line, historically around 5% to 6% combined, though the August 2024 NAR settlement made every commission negotiable and no longer routes buyer-agent compensation through the MLS by default. Beyond commission, sellers pay title insurance (roughly 0.5% to 1%), escrow or attorney fees ($500 to $2,000), transfer taxes (zero in some states, over 1% in a few), prorated property taxes, and any repair credits or concessions negotiated with the buyer. A realistic total for a conventional agent-assisted sale lands near 8% to 10%; a negotiated commission plus low-fee closing can land near 6%.
Pick your percentage to match your situation: 6% for a lean negotiated sale, 8% for a typical agent-assisted closing, 10% for a sale with concessions and repairs. Then re-run the calculator at the optimistic and pessimistic ends so your planning uses a range, not a single fragile number.
Scenario table: what the discount rate and the cost percentage do to the answer
Same future sale ($600,000 in 5 years). The discount rate moves the answer far more than the cost percentage does, because it compounds over the whole holding period:
| Discount rate | Discount factor | Present value (6% costs) |
|---|---|---|
| 5% | 0.783526 | $441,908.76 |
| 8% | 0.680583 | $383,848.92 |
| 10% | 0.620921 | $350,199.63 |
At the same 8% rate and 5 years, each extra point of selling costs is $6,000 off the future proceeds and $4,083.50 off the present value: 4% costs give $392,015.92, 6% give $383,848.92, and 8% give $375,681.92. Every figure in both tables is a real run of this calculator.
Related calculations (worked)
Sometimes you know the present value you need and must solve for the sale price. Rearranged, the formula is: Future sale value needed = Target present value × (1 + discount rate)years ÷ (1 − selling costs ÷ 100). To be worth $400,000 today from a sale in 5 years at an 8% discount rate with 6% costs, the future price must be $400,000 × 1.469328 ÷ 0.94 = $625,245.99. In income terms at an 8% exit cap rate, that price needs exit-year NOI of $625,245.99 × 0.08 = $50,019.68. And if a $300,000 mortgage balance will still be outstanding at sale, the walk-away present value on the pre-filled example is ($564,000 − $300,000) × 0.680583 = $179,673.96.
What most competing calculators miss
Same-keyword tools split into two camps, and each stops halfway. Net-proceeds tools compute sale price minus selling costs and call that the reversion, which is the middle step of the DCF chain, not its present value: they never discount, so a sale five years out and a sale tomorrow score the same. Terminal-value explainers derive the future price from NOI and a cap rate but leave the discounting to the reader. This page runs the whole chain in one place: NOI and cap rate (or a forecast price) to future value, selling costs to net proceeds, discount rate and years to present value, with the factor shown so every step can be checked. For neighbouring jobs, the final sale price calculator works the forward direction, and the reverse investment calculator discounts a lump sum the same way when no sale is involved.
Frequently asked questions
In discounted-cash-flow valuation, the reversion is the projected sale value at the end of the holding period, and the reversion value today is the present value of the net sale proceeds. For a $600,000 sale in 5 years with 6% selling costs, the net future proceeds are $564,000, and at an 8% discount rate the present value is $383,848.92. It is the "what is the future sale worth today" figure, before mortgage payoff and taxes.
Everything deducted from the sale price to close the deal: agent commissions, title insurance, escrow or attorney fees, transfer taxes, prorated property taxes, and any repair credits or buyer concessions. Residential sellers typically total 6% to 10% across these lines, with the commission the largest by far.
In a DCF model they are the same idea: the terminal (exit) value is the value at the end of the forecast period, usually derived as the sale-year NOI divided by a terminal cap rate, and it is then discounted back to today at the discount rate. This calculator does both steps: the income mode derives the future value from NOI and the exit cap rate, and every mode discounts the net proceeds to present value.
No. This calculator deducts only the selling-cost percentage, then discounts. Your mortgage payoff at sale is a separate deduction: subtract the balance outstanding at sale from the net future proceeds, then apply the same discount factor. On the pre-filled example, a $300,000 balance at sale gives ($564,000 − $300,000) × 0.680583 = $179,673.96 of present walk-away value before taxes.
The tool refuses them: selling costs must be below 100%, because at 100% or more the sale yields nothing (or less than nothing) to discount. In practice costs above the sale price mean you would bring cash to closing, not take any away, which is a warning sign about the deal, not a number to discount.
The math is exact; the accuracy of the answer depends entirely on your inputs. The future sale price (or the NOI and cap rate behind it) is a forecast of a future market, the cost percentage is an estimate of fees you have not yet negotiated, and the discount rate is your required return, not a market fact. Run the calculator at low, expected, and high discount rates to see your range: on the pre-filled example, 5% gives $441,908.76 and 10% gives $350,199.63.
You can fold an estimated tax into the percentage if you want a single after-everything number, but it is cleaner to keep it separate: use the calculator for transaction costs, then subtract your estimated tax from the result. Tax depends on your gain, holding period, and jurisdiction, so burying it in one percentage hides an assumption you will want to revisit.
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Embed the Reversion Value Calculator on your own site. Pick a size, copy the code, and paste it into an HTML block on your page.
References
- MyKnowledgeDock. Typical Closing Costs for Seller: What Sellers Pay in 2026 – total seller closing costs typically 6% to 10% of the sale price; post-NAR-settlement commissions are fully negotiable. Accessed October 23, 2026.
- Effective Agents. What To Expect: Fees When Selling a House – selling a house costs 9% to 15% all-in including commissions, closing costs, repairs and staging; seller closing costs alone 1% to 3% excluding commissions. Accessed October 23, 2026.
- iBuyer.com. Average Real Estate Commission Rates (2026) – combined commissions historically 5% to 6%; post-settlement rates drifted slightly lower to about 5.5% to 5.7% nationally. Accessed October 23, 2026.
- Kukun. Estimate Cost of Selling Home and Maximize Net Proceeds – worked breakdowns of agent commission, closing costs, mortgage payoff, and repairs into estimated net proceeds on $400,000 and $500,000 sales. Accessed October 23, 2026.
- LegalClarity. How Much Are Real Estate Closing Costs? Buyer and Seller Fees – seller closing costs historically 8% to 10% including commissions; transfer taxes, title fees, and prorated taxes itemized. Accessed October 23, 2026.