Real Estate Commission Calculator
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Real estate commission is a percentage of the sale price. On a $400,000 home, a 2.75% listing fee is $11,000 and a 2.5% buyer agent fee is $10,000, so the seller pays $21,000 in total. Rates are negotiable, and an agent then shares their part with the brokerage.
Enter 0 if the buyer pays their own agent.
For example 70 for a 70/30 split. Used for both agents.
Closing costs, repairs or concessions.
| Commission | |
| Listing side (2.75%) | $11,000.00 |
| Buyer agent side (2.5%) | $10,000.00 |
| Total commission (5.25%) | $21,000.00 |
| Listing side split | |
| Listing agent take-home | $7,700.00 |
| Listing brokerage keeps | $3,300.00 |
| Buyer side split | |
| Buyer agent take-home | $7,000.00 |
| Buyer brokerage keeps | $3,000.00 |
| Seller | |
| Sale price | $400,000.00 |
| Less commission | -$21,000.00 |
| Estimated net to seller | $379,000.00 |
Show steps
- Listing side = $400,000.00 x 2.75% = $11,000.00.
- Buyer side = $400,000.00 x 2.5% = $10,000.00.
- Total = $11,000.00 + $10,000.00 = $21,000.00.
- Listing agent = $11,000.00 x 70% = $7,700.00.
- Seller net = $400,000.00 – $21,000.00 = $379,000.00.
How to use the real estate commission calculator
- Enter the sale price of the home.
- Enter the listing agent’s rate from the listing agreement.
- Enter the rate the seller agreed to pay the buyer’s agent, or 0 if the buyer pays their own agent.
- Enter the agent’s share after the broker split and any per-side fee to see each agent’s take-home pay.
- Add other costs and the mortgage payoff to estimate the seller’s net.
Real estate commission formula
- Commission = sale price × commission rate
- Total commission = listing side + buyer side
- Agent take-home = side commission × agent split − fees
- Seller net = sale price − total commission − other costs − mortgage payoff
Rates are percents, so divide by 100 before multiplying: 2.75% = 0.0275.
Worked example: $400,000 home
| Step | Work | Result |
|---|---|---|
| Listing side at 2.75% | 400,000 × 0.0275 | $11,000 |
| Buyer side at 2.5% | 400,000 × 0.025 | $10,000 |
| Total commission | 11,000 + 10,000 | $21,000 (5.25%) |
| Listing agent on a 70/30 split | 11,000 × 0.70 | $7,700 |
| Listing brokerage | 11,000 − 7,700 | $3,300 |
| Seller before other costs | 400,000 − 21,000 | $379,000 |
Who pays the buyer's agent?
Since August 17, 2024, under the National Association of Realtors settlement rules, offers of buyer agent pay are no longer posted on MLS listings, and buyers working with an agent sign a written agreement that states what the agent is paid. The buyer’s agent can be paid by the buyer, by the seller as a concession, or a mix of both. Enter only the part the seller pays in the buyer agent field.
Commission on common sale prices
| Sale price | 2% | 2.5% | 3% | 5% | 6% |
|---|---|---|---|---|---|
| $250,000 | $5,000 | $6,250 | $7,500 | $12,500 | $15,000 |
| $400,000 | $8,000 | $10,000 | $12,000 | $20,000 | $24,000 |
| $600,000 | $12,000 | $15,000 | $18,000 | $30,000 | $36,000 |
| $1,000,000 | $20,000 | $25,000 | $30,000 | $50,000 | $60,000 |
How agent splits work
An agent does not keep the whole commission on their side. The brokerage takes a share set in the agent’s contract, such as 70/30 or 80/20, and some brokerages charge a flat transaction fee instead or as well. A team may take another cut. Before taxes and business costs, a listing agent on a 70/30 split keeps 70% of the listing side: $7,700 of $11,000 in the example.
Common mistakes
- Using the total rate for one agent. A 5% total is often two sides, such as 2.5% and 2.5%, not 5% to one agent.
- Treating commission as profit. The agent shares it with the brokerage and pays taxes and expenses.
- Forgetting other selling costs. Title, escrow, transfer taxes and repairs also come out of the seller’s proceeds.
Real estate commission practice quiz: 10 questions
Test yourself with 10 multiple-choice questions. Choose an answer and press Submit to see if you are right and why. Your score appears at the end.
The rates add to 5%: 500,000 × 0.05 = $25,000. Separately, 13,750 + 11,250 = 25,000.
The agent keeps 70%: 12,000 × 0.70 = $8,400. The brokerage keeps $3,600.
Under the NAR settlement rules, compensation offers are not posted on MLS. Buyers sign a written agreement with their agent instead.
Commission rates are negotiable between the client and the brokerage and are written into the agreements.
Quiz complete
Frequently asked questions
How is real estate commission calculated?
Multiply the sale price by the commission rate for each side. On a $400,000 sale, 2.75% to the listing side is $11,000 and 2.5% to the buyer side is $10,000, for $21,000 in total.
What is the typical real estate commission?
There is no standard rate: commissions are negotiable and vary by market, property and service. Totals have historically been in the range of about 5% to 6% when one seller paid both sides, and many sales now come in lower.
Who pays the real estate commission?
The seller pays the listing agent. Since August 2024, the buyer's agent is paid under a written agreement with the buyer, and the money can come from the buyer, from the seller as a concession, or from both.
How much does an agent take home from a commission?
Their side of the commission times their split with the brokerage, minus any fees. On an $11,000 side with a 70/30 split, the agent receives $7,700 before taxes and expenses.
Is the commission taken out of the seller's proceeds?
Yes. It is usually paid at closing from the sale money, along with other selling costs and any mortgage payoff.
Sources
- National Association of Realtors: Practice changes from the settlement
- Consumer Financial Protection Bureau: Closing Disclosure explainer
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