Seller Concession Calculator: Credit Toward the Buyer's Costs
Work out a seller concession as a percentage of the home price — the credit a seller gives toward the buyer's closing costs — and see the dollar amount and the price net of the concession.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Seller concession | Price net of concession |
|---|---|---|
| 3% of $350k ($10,500) | 10,500 | 339,500 |
| 6% of $250k (FHA max) | 15,000 | 235,000 |
| 2% of $500k | 10,000 | 490,000 |
| 3% of $600k | 18,000 | 582,000 |
How This Calculator Works
Enter the concession percentage and the purchase price. The calculator returns the concession in dollars. A seller concession is a credit from seller to buyer (most often toward closing costs), so the buyer brings less cash to closing while the contract price stays the same. Loan programs cap how large a concession can be.
The Formula
Percentage of an Amount
Amount is the base value, Percentage is the rate applied to it
Worked Example
A 3% seller concession on a $350,000 home is $10,500 toward the buyer's closing costs. The price on the contract stays $350,000 — the concession reduces the cash the buyer needs at closing, not the sale price itself. Concessions are common in buyer-friendly markets and are capped by loan type: conventional loans often allow 3%–6% (depending on down payment), FHA up to 6%, VA limited, and the cap can't exceed the buyer's actual closing costs.
Key Insight
Seller concessions are a flexible negotiating tool, but they work differently from a price cut and have specific rules. Because the concession is a credit toward the buyer's closing costs (and sometimes prepaids or rate buydowns) rather than a price reduction, it keeps the contract price higher — which can matter for comparable sales and for the seller's net. A common structure in negotiations: the buyer offers full price but asks for a concession, effectively financing closing costs into the loan while keeping cash in pocket. Key constraints: the concession can't exceed the buyer's actual closing costs (you can't pocket the difference as cash), and loan programs cap the percentage — conventional limits scale with down payment, FHA allows up to 6%, VA is restricted, and exceeding the cap means the excess is disallowed or must reduce the price. The trade-off versus a price reduction: a concession helps a cash-tight buyer cover upfront costs but means financing those costs over the loan (paying interest on them), while a price cut lowers the loan and monthly payment. For sellers, a concession can close a deal with a stretched buyer while protecting the headline price. Run the dollar figure here, then weigh concession versus price reduction for your situation, and confirm the loan program's cap.
Frequently Asked Questions
How is a seller concession calculated?
Multiply the purchase price by the concession percentage. A 3% concession on a $350,000 home is $10,500. It's a credit toward the buyer's closing costs, so the buyer brings less cash while the contract price stays the same.
Does a concession lower the sale price?
No — the contract price stays the same. A concession is a credit from seller to buyer toward closing costs (and sometimes prepaids or a rate buydown), reducing the cash the buyer needs at closing rather than the price. That's the key difference from a price reduction.
Are there limits on seller concessions?
Yes. Loan programs cap them: conventional loans often allow 3%–6% depending on down payment, FHA up to 6%, and VA is more restricted. Crucially, a concession can't exceed the buyer's actual closing costs — you can't take the excess as cash. Exceeding the cap means the excess is disallowed.
Concession or price reduction — which is better?
It depends. A concession helps a cash-tight buyer cover upfront closing costs but finances them into the loan (paying interest over time). A price reduction lowers the loan amount and monthly payment. Buyers short on cash often prefer a concession; buyers focused on long-term cost prefer a lower price.
Why would a seller agree to a concession?
To close a deal with a buyer who's stretched on upfront cash while keeping the headline sale price intact (which helps comparable sales and the seller's negotiating position). In buyer-friendly markets, offering a concession can attract offers and get a deal done without formally cutting the price.
Related Calculators
Methodology & Review
The concession is the concession percentage applied to the purchase price; the remainder is the price net of the concession, shown for reference. It models a percentage-of-price concession and does not enforce loan-type concession limits or distinguish closing-cost credits from repair credits.
Written by Ugo Candido · Last updated May 22, 2026.