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1031 exchange planning calculator

Estimate your 1031 exchange equity and replacement-property target.

Enter the expected sale price and the mortgage that will be paid off at closing. We’ll show your equity before selling expenses and a conservative replacement-property target to discuss with your CPA and qualified intermediary.

What this answersRough equity before selling costsA conservative replacement-value targetHow debt payoff changes the planning picture
Educational content by MAG Capital PartnersPlanning contact: Daniel CastañedaEducational sources checked September 25, 2026; transaction-specific tax review is separate.

Pair these estimates with the property-owner planning checklist →

Conservative planning example$1 million sale · $500,000 mortgage payoff
01

Enter the sale

Start with two numbers.

Use your best estimate if the property is not under contract. Selling expenses are intentionally left out of this conservative replacement calculation.

The gross contract price before the mortgage payoff, selling expenses, or other closing adjustments.Use the expected contract price or your broker's best estimate.
Use the mortgage principal or payoff estimate expected to be satisfied when the property sells—not the monthly payment.Enter $0 if there is no mortgage.
02

Your starting point

What should you conservatively plan to replace?

Conservative replacement-property target$1,000,000

This calculator uses the full expected sale price as the conservative starting target.

Equity before selling expenses$500,000Expected sale price minus the mortgage payoff.
Mortgage paid off at closing$500,000The mortgage expected to be satisfied at the sale.
Estimated sale LTV50.0%Mortgage payoff divided by expected sale price. This describes the property being sold, not financing for a replacement property.

$500,000 equity before selling expenses + $500,000 mortgage paid off = $1,000,000 conservative target

What this means

If the property sells for $1,000,000, a conservative starting point is to look for replacement real estate totaling at least $1,000,000. This does not mean the replacement property must have a $500,000 loan. New debt and additional cash are separate financing decisions.

OptionalEstimate the cash that may reach your qualified intermediary
Separate from the conservative target
Modeled selling expensesThis separate cash estimate includes selling expenses. Not every closing-statement item is an exchange expense, so confirm the final amount with your CPA and qualified intermediary.
$60,0006% educational estimate
Estimated cash after the mortgage and modeled selling expenses$440,000

$1,000,000 sale − $500,000 mortgage − $60,000 modeled expenses = $440,000

This after-cost cash estimate is intentionally separate from the conservative replacement target above. The target does not subtract selling expenses; your CPA and qualified intermediary should confirm the transaction-specific amount.

Want help confirming the numbers?

Send Daniel your conservative starting point.

Your expected sale price, mortgage payoff, equity before selling expenses, conservative replacement target, and optional tax estimate will travel with the inquiry.

Send Daniel these numbers
Optional tax comparison

What if you sell and pay the estimated taxes now?

This separate illustration uses the modeled selling expenses above and requires tax-basis assumptions. Review every input before asking the calculator to show a result.

Review or enter tax informationOptional

The $1 million example uses $60,000 of modeled selling expenses, a $600,000 original purchase price, $250,000 of depreciation, and a 5% state-tax rate. Replace these figures with your records before relying on the comparison.

The original purchase price before later improvements and depreciation. Your tax basis can be very different after a prior 1031 exchange, gift, inheritance, or other adjustment, so use your depreciation schedule or ask your CPA.
Qualifying capital additions that increased the property's tax basis, such as major renovations—not routine repairs.
Basis generally must be reduced by depreciation you deducted or could have deducted, even if you claimed less or none.Use the allowed-or-allowable amount from your tax records when available.
The federal rate applied here to appreciation after separating the simplified depreciation-related gain.
A simplified maximum-rate illustration for unrecaptured Section 1250 gain. Actual character and rate require tax advice.%
Actual NIIT is 3.8% of the lesser of net investment income or the amount by which modified adjusted gross income exceeds the filing-status threshold. This screen applies 3.8% to all modeled gain and may be higher than actual tax or apply when none is due.
A user-controlled planning rate. States differ materially; enter zero where appropriate or use a CPA-provided estimate.%The starter example uses 5% only as a visible assumption.

This is a no-exchange tax screen, not a tax-return calculation. Prior exchanges, depreciation character, passive losses, filing status, entity structure, and state rules can materially change the result.

Review the tax assumptions above, then select “Show the estimated comparison.”

Educational illustration only. The conservative target uses the gross expected sale price and intentionally does not reduce that target for selling expenses. The optional cash and tax screens use a 6% starting estimate unless changed. They do not calculate taxable boot, recognized gain, financing availability, or final taxes. Confirm transaction-specific results with your CPA, attorney, qualified intermediary, and lender.

What this calculator cannot determine

The core illustration shows equity before selling expenses and a conservative target equal to the gross sale price. Optional cash and tax screens use the assumptions you enter to produce simplified estimates, including modeled basis, gain and tax amounts. Those estimates are separate from the conservative target.

The calculator does not determine final adjusted basis, actual exchange proceeds, eligible exchange expenses, taxable boot, recognized gain, final federal or state tax, identification compliance, financing approval, suitability or exchange qualification. Confirm the actual numbers and transaction structure with your CPA, qualified intermediary, attorney and lender.

Continue the planning work

Debt reliefUnderstand equity, debt replacement, and potential boot →DeadlinesCalculate Day 45 and Day 180 calendar dates →Complete guideReview the full 1031 exchange process →
How the illustration works

One conservative starting point, clearly explained.

01

Enter the gross sale price.

Use the expected contract price before the mortgage payoff, selling expenses, or other closing adjustments.

02

Enter the mortgage payoff.

Use the mortgage principal or lender payoff expected to be satisfied when the property sells.

03

See the conservative target.

The illustration uses the full expected sale price and does not subtract selling expenses from the core target.

04

Confirm it with your advisers.

Your CPA and qualified intermediary should determine the amount required for the actual transaction.

Primary educational referencesIRS Publication 544 ↗IRS NIIT Guidance ↗IRS Form 8824 Instructions ↗NAR compensation disclosure ↗
Before the property closes

Confirm the conservative target before the clock starts.

Share the expected sale price, mortgage payoff, and calculator snapshot with Daniel, then schedule a direct conversation.

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