Congratulations,
as you quoted the $500,000 exemption, I'll assume you are married filing joint. And for these purposes i will also assume you never rented it, and lived in it 2 of the last 5 years. Ok, the gain is calculated as the difference between the selling price and the basis. You mentioned your original basis, ie what you paid for the house. If you have any home improvements, that would increase your basis, and accordingly decrease your gain. So, ponder what you've done to increase the value of your home.
Here's a great TurboTax article that will answer many of your questions.
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