Real Estate Commission Calculator
Free calculator to determine real estate agent commission, split amounts, and seller net proceeds from property sale
Real Estate Commission Calculator
Results
What is a Real Estate Commission Calculator?
A real estate commission calculator is a free tool that determines the total commission fees paid to real estate agents when selling property. It calculates agent fees, split amounts, and seller net proceeds based on sale price and commission percentage.
This calculator helps with:
- Commission planning - Estimate total agent fees before listing property
- Agent split calculations - Determine how commission divides between listing and buyer agents
- Net proceeds estimation - Calculate seller's take-home amount after commissions
- Rate negotiations - Compare different commission rate scenarios
- Closing cost planning - Budget total selling expenses accurately
For commission with tax considerations, use our realtor commission with VAT calculator to include value-added tax in commission calculations.
When evaluating true commission costs, our true cost real estate commission calculator compares different rate scenarios and savings.
For rental properties, the rental commission calculator determines agent fees for lease transactions.
How Real Estate Commission Works
Real estate commission calculation uses the sale price and percentage rate:
Variables defined:
- Sale Price: Final selling price of the property
- Commission Rate: Percentage agreed upon with agent (typically 5-6%)
- Split Percentage: Portion each agent receives (usually 50/50)
- Other Costs: Additional closing costs and fees
Example: $300,000 sale price, 6% commission rate. Total commission = $300,000 × 0.06 = $18,000. With 50% split, each agent receives $9,000. Seller net proceeds = $300,000 - $18,000 - $5,000 other costs = $277,000.
This ensures sellers understand all costs and their final proceeds from the property sale, enabling informed decisions about pricing and negotiations.
Key Concepts Explained
Listing Agent
Represents the seller and markets the property. Typically receives 50% of total commission.
Buyer's Agent
Represents the buyer in the transaction. Usually receives the other 50% of commission.
Brokerage Split
Agents share their portion with their brokerage firm per their employment agreement.
Dual Agency
When one agent represents both parties, they may receive full commission with disclosure.
How to Use This Calculator
Enter Sale Price
Input your property's sale price or expected listing price (e.g., $300,000)
Set Commission Rate
Enter the agreed commission percentage with your agent (typically 5-6%)
Enter Agent Split
Input how commission divides between agents (usually 50% each)
Add Other Costs
Include additional closing costs like title fees, attorney fees, or repairs
View Results
Review total commission, agent shares, and your net proceeds after all costs
Benefits of Using This Calculator
- • Accurate Planning: Know exact commission costs before listing your property for sale.
- • Net Proceeds Clarity: Understand your take-home amount after all fees and commissions.
- • Rate Comparison: Evaluate different commission rates to find the best value.
- • Negotiation Power: Use calculations to negotiate commission rates with confidence.
- • Budget Accuracy: Plan for total selling costs including commissions and closing fees.
- • Transparent Costs: See exactly where your money goes in the transaction process.
Factors That Affect Your Results
1. Property Value
Higher sale prices mean larger commission amounts, even with the same percentage rate.
2. Commission Percentage
Rates vary from 4-7% depending on market, property type, and negotiation. Every 1% changes costs significantly.
3. Market Conditions
Hot seller's markets may allow lower commission negotiation, while buyer's markets may require standard rates.
4. Agent Services
Full-service agents charge higher rates than discount brokers who offer limited services.
5. Location
Regional differences affect typical commission rates. Some areas have lower or higher standard rates.
Frequently Asked Questions (FAQ)
Q: How is real estate commission calculated?
A: Multiply sale price by commission rate percentage. For example, $300,000 × 6% = $18,000 total commission.
Q: Who pays real estate agent commission?
A: Typically the seller pays commission, which splits between listing and buyer's agents. Deducted from sale proceeds at closing.
Q: What is the typical real estate commission rate?
A: Traditional rates range 5-6% of sale price in the US, though rates vary by location, property type, and market.
Q: Can real estate commission rates be negotiated?
A: Yes, commission rates are negotiable. Many sellers negotiate lower rates, especially for higher-priced properties.
Q: How is commission split between agents?
A: Typically split equally between listing and buyer's agents. Each agent then shares with their brokerage per agreement.