Downsizing Calculator: How Much Could You Release?
Thinking about moving to a smaller home? Use this downsizing calculator to get a rough idea of how much cash you could release.
Estimated cash released
Based on these figures, your new home and moving costs would be more than your current home's value, so no cash would be released.
This is a rough estimate only. Actual proceeds depend on your final sale price, purchase price, and costs such as estate agent fees, legal fees, stamp duty and removals. Speak to an adviser or estate agent for a more accurate picture.
What affects your final proceeds?
The amount you receive depends on the price your current home sells for and the price you pay for your new one. You will also have costs to cover, such as estate agent fees, legal fees, stamp duty on your new home and removals. These vary by area and by property value, so it is worth getting quotes early.
How the downsizing calculator works
The calculator takes the value of your current home, subtracts the cost of your new home, then subtracts your moving and selling costs. What is left is the cash you could release.
- Moving and selling costs: if you leave this box as suggested, the calculator uses an estimate of 3% of your current home's value. This is an estimate only, not a quote, so replace it with your own figure once you have quotes.
- A range, not a figure: the result is shown as a range either side of the central estimate, rounded outwards to the nearest £500.
A worked downsizing example
Suppose you sell a home for £400,000 and buy one for £250,000 in England. Stamp Duty Land Tax on the new home would be about £2,500, based on the residential rates from April 2025 (nothing on the first £125,000, then 2% up to £250,000).
Add estate agent fees of perhaps £5,000 to £7,500, conveyancing for the sale and purchase of around £2,000 to £3,000, and removals of £1,000 to £2,000. Total costs would then be roughly £10,500 to £15,000, or about 2.6% to 3.8% of the sale price, leaving around £135,000 to £139,500.
In this example, the calculator's suggested estimate of 3% (£12,000) falls within that range, but your own costs could be higher or lower, so it is worth entering your own figure once you have quotes. Scotland and Wales use Land and Buildings Transaction Tax and Land Transaction Tax, which have different rates.
Other costs to budget for when downsizing
The calculator covers the main costs of selling and buying, but a move often brings others. It is worth allowing for:
- a survey on the new home, which can reveal repairs to budget for
- work on the new home, such as decorating, adaptations or new appliances
- furniture that fits a smaller space, and the cost of selling or storing what does not
- paying for both homes for a short time if the sale and purchase do not complete on the same day
If you buy your new home before selling your current one, higher rates of stamp duty may apply until the old home is sold, and the extra may be reclaimable within a set period. The rules are detailed, so check them on gov.uk or with your solicitor before you commit.
Downsizing or another option?
Downsizing can release money without taking on a loan, and a smaller home may cost less to run. It also means moving, possibly away from family or friends, and paying the costs above. Some homeowners compare it with staying put and borrowing against their home through equity release or a retirement interest-only mortgage. Our downsizing guide covers the practical and personal side of moving, and an FCA-regulated adviser can help you compare the financial options.
Frequently asked questions
What costs should I include in the downsizing calculator?
Include everything you would pay to sell and buy: estate agent fees, conveyancing for both the sale and the purchase, stamp duty (or its equivalent in Scotland and Wales) on the new home, surveys, removals, and any work the new home needs. Quotes from local agents and solicitors give a more reliable figure than the suggested default.
Why is the result shown as a range?
Sale prices, purchase prices and moving costs rarely land exactly where you expect. The calculator shows a range around the central estimate so you can see the likely spread rather than a single number that could give a false sense of precision.
Do I pay stamp duty when I downsize?
You usually pay Stamp Duty Land Tax on the home you buy in England and Northern Ireland if it costs more than the threshold. Scotland has Land and Buildings Transaction Tax and Wales has Land Transaction Tax, with different rates. There is no separate relief for downsizers, so it is worth checking the current rates on gov.uk before you budget.
Will the money I release affect my benefits?
It can. Cash from downsizing counts as savings, which may reduce means-tested support such as Pension Credit or council tax reduction, and could be taken into account if you later need help paying for care. Our guide to paying for care explains how capital is assessed.
Is downsizing better than equity release?
Neither is better for everyone. Downsizing usually costs less over time because there is no loan or interest, but it means moving and paying sale and purchase costs. Equity release lets you stay in your home, but interest usually builds up. Our comparison of equity release vs downsizing sets out the trade-offs.