The net payoff can be defined as the total loss or profit occurred to an individual or a business entity received after the sale of a product when the cost of production and the accounting losses have been subtracted from the total sales of the product. The term net payoff is usually associated with the sales of real estate and other kind of investment transactions. The concept of the net payoff tends to explain the investor or seller that when a seller sells real estate, property or some other kind of investment such as stocks he or she must keep in mind the actual profit or loss he or she is going to receive in addition to the total sale price of the investment. The net payoff is the total amount that the seller will receive at the end of the transaction.

The example of the Nate payoff can be taken as when an individual sells his house for $25,000 it is the total amount or the sale price of the house not the profit received by the seller. From the total amount received the seller must subtract the amount that will goes as a home mortgage, some of the amount will be paid to the dealer or the real estate agent the form of the commission. In addition to that any settlement fee will also be deducted from the total amount of $25,000. Another example of net pay off can be the amount received from the sales of some shares. In this case the net pay off will be calculating the sales commission from the total amount of sales.

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