Real Estate Commission Calculator

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Property Details

Sale Price

$

Commission Rate

%

Commission Split

Listing Broker Split

%

Selling Broker Split

%

Agent's Share (%)

%

Broker's Share (%)

%

Additional Fees

Estimated Closing Costs

$

Other Fees

$

Commission Breakdown

Total Commission

$0

Net Proceeds to Seller

$0

Listing Broker Share

$0

Selling Broker Share

$0

Listing Agent's Commission

$0

Selling Agent's Commission

$0

Listing Broker's Commission

$0

Selling Broker's Commission

$0

Amortization Schedule (First 12 Months)

Month	Total Commission	Listing Agent	Selling Agent	Listing Broker	Selling Broker

Commission Information

Typical Commission Rates: Residential real estate commissions typically range from 5-6% of the sale price, though this can vary by market.

Standard Splits: The commission is usually split evenly between listing and selling brokers (50/50), with agents typically receiving 70-80% of their broker's share.

Calculation History

Date	Sale Price	Commission Rate	Total Commission	Net Proceeds	Currency	Actions

No Calculation History

Your calculation history will appear here after you save calculations.

This calculator provides estimates only. Actual commissions and fees may vary.

Calculation saved to history

Understanding Real Estate Commissions

Your Complete Guide to Commission Calculations with Our Easy-to-Use Calculator

Selling a property involves many costs, and real estate commissions are often the largest. Understanding how commissions work can save you thousands of dollars and help you plan your sale better. This guide breaks down everything you need to know in simple terms.

Think of real estate commissions as a team sport: multiple people help sell your home, and the commission gets split among them. Let's explore how it all works!

What Are Real Estate Commissions?

Real estate commissions are fees paid to real estate professionals for their services in helping you buy or sell property. These commissions are typically:

• Paid by the seller at closing
• Based on a percentage of the sale price (usually 5-6%)
• Split among multiple parties involved in the transaction

Simple Example:

If you sell a house for $500,000 with a 6% commission:

• Total commission = $500,000 × 6% = $30,000
• This $30,000 gets split among the brokers and agents
• You receive $470,000 ($500,000 - $30,000) before other costs

Try Our Real Estate Commission Calculator

No complex math needed! Enter your sale details and see exactly how the commission gets split and what you'll walk away with.

Who Gets Paid in a Real Estate Transaction?

The Commission Split Chain

Total Commission → Split between Brokers → Split between Agents & Brokers

The Main Players:

1. Listing Broker: Represents the seller through their agent
2. Selling Broker: Represents the buyer through their agent
3. Listing Agent: The specific agent who lists your property
4. Selling Agent: The specific agent who brings the buyer

Step-by-Step: How Commissions Are Calculated

1

Calculate Total Commission

Formula: Sale Price × Commission Rate

Example: $500,000 × 6% = $30,000

2

Split Between Brokers

Typically 50% to listing broker, 50% to selling broker

Example: $30,000 ÷ 2 = $15,000 each

3

Split Within Each Brokerage

Each broker splits their share with their agent (usually 70/30)

Example Listing Side: $15,000 × 70% = $10,500 (agent) + $4,500 (broker)

4

Calculate Your Net Proceeds

Sale Price - Total Commission - Other Costs

Example: $500,000 - $30,000 - $6,000 = $464,000

Understanding the Calculator Fields

Property Details Section

• Sale Price: The final agreed selling price of your property
• Commission Rate: The percentage you agreed to pay (typically 5-6%)

Commission Split Section

• Listing Broker Split: What percentage of total commission goes to the listing broker (usually 50%)
• Selling Broker Split: What percentage goes to the selling broker (usually 50%)
• Agent's Share: How much of their broker's share the agent keeps (typically 70-80%)
• Broker's Share: How much the brokerage company keeps (typically 20-30%)

Quick Math Tip

Listing Broker Split + Selling Broker Split MUST equal 100%
Agent's Share + Broker's Share MUST equal 100%
Our calculator automatically checks this for you!

Additional Fees Section

• Closing Costs: Fees for title insurance, attorney, recording, etc. (typically 2-5% of sale price)
• Other Fees: Any additional costs like repairs, staging, or marketing

Key Features of Our Calculator

50+ Currencies

Calculate in your local currency - from US Dollars to Euros, Yen, and more. Perfect for international property sales.

History Tracking

Save and compare different scenarios. Perfect for negotiating or trying "what-if" scenarios with different commission rates.

Export Results

Save calculations as PDF, HTML, or text files for your records or to share with your real estate professional.

Detailed Breakdown

See exactly who gets what - from total commission down to individual agent and broker amounts.

Common Commission Scenarios

Scenario 1: Standard Residential Sale

• Sale Price: $400,000
• Commission Rate: 6%
• Broker Split: 50/50
• Agent Share: 70%
• Net to Seller: $376,000 (after commission and typical closing costs)

Scenario 2: Discount Broker

• Sale Price: $400,000
• Commission Rate: 4.5%
• Broker Split: 50/50
• Agent Share: 80%
• Net to Seller: $382,000 (you save $6,000 vs standard commission!)

Negotiation Tip

Everything is negotiable! You can negotiate:
1. The total commission rate
2. The split percentages
3. Which services are included
Use our calculator to see how different rates affect your bottom line.

What Do These Fees Cover?

Commissions pay for professional services including:

• Marketing: Photography, virtual tours, online listings
• Showings: Time spent showing your property to potential buyers
• Negotiation: Expertise in getting you the best price
• Paperwork: Handling complex legal documents
• Networking: Access to buyer databases and other agents

Frequently Asked Questions (FAQs)

1. Are real estate commissions negotiable?

Yes! Everything is negotiable in real estate. Typical rates are 5-6%, but you can often negotiate lower rates, especially for higher-priced properties or if you're working with a discount broker.

2. Who pays the commission - buyer or seller?

The seller typically pays the commission from the sale proceeds. However, this cost is usually factored into the sale price, so effectively both parties contribute.

3. What's included in "closing costs"?

Closing costs typically include title insurance, attorney fees, recording fees, transfer taxes, and prorated property taxes. They usually range from 2-5% of the sale price.

4. Can I avoid paying commission by selling FSBO?

Yes, FSBO (For Sale By Owner) lets you avoid paying listing agent commission. However, you'll likely still need to pay the buyer's agent commission (typically 2.5-3%), and you'll handle all the work yourself.

5. What's the difference between a broker and an agent?

Agents are licensed salespeople who work under brokers. Brokers have additional training and can own their own agencies. Brokers typically keep a portion of their agents' commissions.

6. How does dual agency work with commissions?

In dual agency (when one agent represents both buyer and seller), the agent might receive both sides of the commission. This is controversial in some states and is sometimes illegal.

7. Are commissions the same for commercial properties?

Commercial commissions are usually higher (typically 6-10%) and are structured differently. They often involve longer lease terms and more complex negotiations.

8. What happens if my property doesn't sell?

If your property doesn't sell, you typically don't pay any commission. Commissions are only paid at closing when the sale is complete.

9. Can I pay a flat fee instead of a percentage?

Yes! Some brokers offer flat-fee services where you pay a set amount regardless of sale price. This can be cost-effective for higher-priced properties.

10. How do commissions work on new construction?

Builders typically pay commissions to buyer's agents (usually 2-3%). This is often built into the home's price, so the buyer effectively pays through the purchase price.

11. Are commissions tax deductible?

For primary residences: No, commissions are not tax deductible. For investment properties or business properties: Yes, commissions are considered selling expenses and can reduce capital gains tax.

12. What's a typical agent/broker split?

New agents often start at 50/50 splits with their broker. Experienced agents can negotiate 70/30, 80/20, or even 100% commission (paying their broker a monthly desk fee instead).

13. How do commissions vary by location?

Commission rates vary by market. Urban areas might have slightly lower rates due to competition, while rural areas might have higher rates due to longer travel times between properties.

14. What happens if I cancel my listing agreement?

If you cancel before your listing period ends, you might owe a cancellation fee. If you sell to a buyer your agent found, you'll likely still owe commission even if you cancel the agreement.

15. Can I save calculations for multiple properties?

Yes! Our calculator's history feature lets you save unlimited calculations. Perfect for comparing different properties or different commission scenarios for the same property.

Final Thoughts

Understanding real estate commissions is crucial for anyone buying or selling property. While the percentages might seem small, they represent significant amounts of money. A 1% difference on a $500,000 property is $5,000 - that's real money that stays in your pocket!

Our calculator makes what seems complex actually simple. You can experiment with different rates, see exactly who gets paid what, and understand your true net proceeds before you even list your property.

Pro Tip for Sellers:

Instead of just focusing on commission percentages, consider the agent's marketing plan, experience, and track record. A great agent might charge 6% but get you 10% more for your home, netting you more money overall!