What are Net Proceeds?

Net proceeds is the amount of funds received from a sale transaction, after all sale-related fees have been paid. Examples of these fees are closing costs, commissions , and credit card fees.  These fees do not include the cost of the asset that was sold.

Example of Net Proceeds

An artist sells a painting through an art gallery for $10,000. The gallery takes a 40% commission, so the net proceeds for the artist amounts to $6,000.