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Downsizing Savings Calculator

Work out downsizing savings instantly with clear inputs, formula shown and shareable results.

About Downsizing Savings Calculator

Downsizing releases equity but transaction costs on both sides consume a meaningful share. The ongoing benefit is the running cost saving plus the income the released equity can generate, here at a 5% withdrawal.

Formula

Downsizing

Released = current value - new value - transaction costs; annual benefit = running saving + released × 5%

Worked example

With the default values below, Downsizing Savings Calculator returns Equity Released After Costs of $5,040,000.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Current Home Valueminimum 0
15,000,000
New Home Valueminimum 0
9,000,000
Transaction Costsaccepts 0–20 %
8 %
Annual Running Cost Savingminimum 0
180,000

Results

Equity Released After Costs
$5,040,000.00
Transaction Costs
$960,000.00
Total Annual Benefit
$432,000.00
Annual Income From Released Equity
$252,000.00

Step by step

  1. 1Values used
  2. 2Downsizing
  3. 3Equity Released After Costs= 5,040,000.00
  4. 4Transaction Costs= 960,000.00
  5. 5Total Annual Benefit= 432,000.00
  6. 6Annual Income From Released Equity= 252,000.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation or tax into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.

Frequently Asked Questions

Why are transaction costs so high?

Stamp duty, agency fees, legal costs and moving expenses apply on both the sale and the purchase.

Is downsizing worth it for the money alone?

Only if the gap is large. On a modest gap the costs can absorb several years of running cost savings.

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