Free tools / Real estate commission calculator
Real Estate Commission Calculator
See the total commission on any sale, how it splits between the two agents, and — if you're the agent — what actually lands in your pocket after the broker split and fees. Free, no signup.
The sale
Both sides combined — always negotiable
How the total splits between the two agents — 50/50 is common
Your take-home (for agents)
Your percentage of your side — 70/30 splits are typical
Transaction, franchise, or desk fees your brokerage charges
Total commission
$24,750
5.5% of $450,000
Where it goes
- Listing side (50%)
- $12,375
- Buyer's side (50%)
- $12,375
- Your side, after the 70/30 broker split
- $8,663
- Your take-home
- $8,663
That's 1.93% of the sale price — the gap between the headline rate and what an agent actually pockets.
Work it backwards
At this price and split, how many closed sides hit your yearly income goal?
12 deals/yr
$100,000 ÷ $8,663 take-home per deal ≈ 12 closings — about 1 a month.
Where do 12 deals come from?
Draw any neighborhood on WhoseTitle and get every owner inside it — with likelihood-to-sell signals, free from public county records.
Start finding leads — freeHow to use the commission calculator, step by step
- 1
Enter the sale price
The agreed (or expected) price of the home. Everything else is calculated from this number.
- 2
Enter the total commission rate
The combined percentage for both agents, from the listing agreement. If you only know one side's rate, double it as a starting point and adjust the split in the next field.
- 3
Set how it divides between the two sides
Most sales have a listing agent and a buyer's agent, and the total commission is shared between their two sides. An even 50/50 is the common convention — hover the ⓘ icon on that field if the two-sides setup is new to you.
- 4
Agents: add your broker split and fees
Your percentage of your side (70% on a 70/30 split) and any per-transaction fees your brokerage charges. Selling your own home and just want the commission cost? Skip this section — the top numbers are what you need.
- 5
Read the breakdown — or plan your year
"Where it goes" itemizes every cut from the total down to your take-home. Below it, enter a yearly income goal and the calculator tells you how many closings at this price and split get you there.
How real estate commissions work
A commission is a percentage of the sale price, paid at closing out of the sale funds. But the headline number — say 5.5% — doesn't go to one person. It divides between the listing side and the buyer's side, and then each agent shares their portion with the brokerage they work under. By the time it reaches an individual agent's pocket, that 5.5% is usually closer to 2%.
Take-home = price × rate × your side's share × your broker split − fees
Four cuts between the headline rate and the agent's pocket.
An example, start to finish
Say a home sells for $450,000 with a 5.5% total commission. That's $24,750 paid at closing — the number a seller should budget for.
Split evenly, each side's brokerage receives $12,375. Now follow the listing agent's half: on a 70/30 split with their broker, the agent's share is $8,663 before any transaction fees. That's about 1.9% of the sale price — a useful number to remember whenever someone says agents "make 6%." From that 1.9% the agent also covers their own marketing, insurance, dues, and taxes.
The "work it backwards" box turns this into a business plan: at $8,663 per closing, a $100,000 income goal takes 12 closed sides a year — one a month. Change the price or the split and watch the answer move.
Who pays — and what changed in 2024
For decades the custom was simple: the seller paid the full commission, and the listing broker shared it with the buyer's broker through the MLS. An industry settlement changed the mechanics in August 2024: buyer-agent pay can no longer be offered through the MLS, and buyers now sign a written agreement with their agent that spells out what that agent earns.
In practice, sellers still frequently agree to cover the buyer's agent as part of the negotiation — it widens the pool of buyers who can afford the home. But it's now an explicit term in the offer rather than a default, which means every number in this calculator is worth confirming deal-by-deal rather than assuming.
Commercial deals and Florida notes
Commercial: the same math applies, but rates step down as prices climb — often through a tiered schedule like 6% on the first million and less above it. Work out your effective overall rate and enter that; the split and take-home logic is identical.
Florida: no state law sets commission rates — they're negotiable here like everywhere. Typical totals run 5–6%, and on the seller's side remember the commission sits alongside Florida's other selling costs like documentary stamps. Our seller net sheet calculator puts the commission and every other cost on one page.
12 closings a year starts with a full pipeline.
WhoseTitle turns any neighborhood into a lead list — owner names, tenure, and likelihood-to-sell signals from public county records, free. The math above is the goal; this is the deal flow.
Commission FAQs
What is the average real estate commission?
Historically 5–6% of the sale price, split between the listing side and the buyer's side. Since the industry rule changes of 2024, averages have drifted closer to 5% and vary more from deal to deal, because every piece of it is negotiated: the total rate, how it divides between the two sides, and who pays which side.
Who pays the real estate commission?
Traditionally the seller paid the full commission out of the sale proceeds, covering both agents. Since August 2024, buyer-agent compensation can no longer be advertised through the MLS — buyers now sign written agreements with their own agents, and the buyer's agent's fee is negotiated in the deal. In practice sellers still often agree to cover it as a concession, but it's a term of the contract now, not a default.
Are real estate commissions negotiable?
Yes — every part. The total percentage, each side's share, and any flat-fee or discounted arrangement are all set by agreement, not by law or any industry rule. Agents may adjust rates for higher-priced homes, repeat clients, or dual representation, and it never hurts to ask.
How is the commission split between agents?
The total commission divides between the listing side and the buyer's side — 50/50 is the common convention, but the listing agreement controls. Then each agent splits their side with their brokerage (a 70/30 agent/broker split is typical for mid-career agents). So on a 6% commission, a listing agent on a 70/30 split takes home about 2.1% of the sale price before fees and taxes.
What is a broker split and a cap?
Agents work under a brokerage license, and the brokerage keeps a share of every commission — that's the split. Newer agents might start at 50/50 or 60/40; producers negotiate up to 80/20 or better. Some brokerages instead use a cap: the broker takes its share only until you've paid a set yearly amount, after which you keep 100% of each commission (often minus a small transaction fee).
How do commercial real estate commissions work?
Same math, different customs. Commercial sale commissions typically run 4–6% on smaller deals and step down on larger ones — often via a tiered schedule (for example 6% of the first million, lower on the rest). Leases pay differently again, usually a percentage of the total lease value. Enter the effective rate for your deal and the calculator handles the rest.
When does the agent actually get paid?
At closing. The commission comes out of the sale funds and goes to the brokerages on each side; each brokerage then pays its agent their split, usually within a few days. If a sale falls through before closing, no commission is owed under most listing agreements.