Real Estate Commission Calculator
Calculate listing and buyer's agent commission, net proceeds to seller, and agent take-home after brokerage split. Also includes a general sales commission calculator for any deal-based commission structure.
% of the side's commission the agent keeps; the rest goes to the brokerage.
Commission Breakdown
Real Estate Commission Formula
Commission rates and structures vary by market, brokerage, and negotiation — the figures above are for planning purposes. Always confirm exact rates and splits in your listing agreement or brokerage agreement.
Frequently Asked Questions
How do you calculate real estate commission?
Real estate commission = Sale price × Commission rate. Total commission is typically 5–6% of the sale price, usually split evenly between the listing agent's side and the buyer's agent's side (e.g., 3% + 3%). Example: a $400,000 home at 6% total commission = $24,000, split as $12,000 to each side before any brokerage split.
Who pays real estate agent commission?
Traditionally the seller pays the full commission out of sale proceeds, which is then split between the listing brokerage and the buyer's brokerage. Following the 2024 NAR settlement, buyer's agent commission is no longer required to be offered through the MLS in the US — buyers may now negotiate and pay their agent directly in some transactions, so terms vary by deal and state.
What is a typical real estate commission split with a broker?
Agents don't keep their entire side of the commission — they split it with their brokerage. Common splits range from 50/50 (new agents) to 70/30, 80/20, or even 100% with a monthly desk fee (high-producing agents on a 'cap' plan). A 70/30 split means the agent keeps 70% of their side's commission and the brokerage keeps 30%.
How much commission does a real estate agent make on a $500,000 house?
At a typical 6% total commission, the full commission is $30,000, split roughly $15,000 to the listing side and $15,000 to the buyer's side. If the listing agent is on a 70/30 split with their brokerage, they personally take home 70% of $15,000 = $10,500 before taxes and expenses.
Is real estate commission negotiable?
Yes. Commission rates are not fixed by law and can be negotiated between the seller and their listing agent. Rates commonly range from 4% to 6% total, though they can be lower for high-value homes or higher for difficult-to-sell properties. Always get the rate in writing in your listing agreement.
How is sales commission calculated for non-real-estate sales?
General sales commission = Sale amount × Commission rate, often summed across multiple deals in a period. Structures vary: flat percentage (most common), tiered rates that increase after hitting quota, or a base salary plus commission (OTE). Use the 'Sales Commission' tab above for a straightforward flat-rate calculation across any number of deals.