Free Real Estate Commission Calculator
Calculate the total real estate commission and the split between listing agent, buyer agent, and their respective brokerages.
Total Commission
$22,500
Total Commission vs Sale Price
Real Estate Commission Structure
Real estate commissions are negotiable fees paid at closing, typically by the seller, for the services of real estate agents.
How Commission Splits Work
1. Total commission is set in the listing agreement (typically 4-6%) 2. The listing brokerage offers a co-op split to the buyer brokerage (often 50/50) 3. Each brokerage splits with their agent based on the agent-broker agreement
Recent Changes
After the 2024 NAR settlement:
Commission as a Selling Cost
Commission reduces your net proceeds and is factored into capital gains calculations as a selling expense, lowering your taxable gain.
Example Calculation
A $450,000 sale with 5% total commission, 50/50 split. Both agents have 70/30 splits with their brokerages.
- 01Total commission: $450,000 x 5% = $22,500
- 02Listing side: $22,500 x 50% = $11,250
- 03Buyer side: $22,500 - $11,250 = $11,250
- 04Listing agent (70% of side): $11,250 x 70% = $7,875
- 05Buyer agent (70% of side): $11,250 x 70% = $7,875
- 06Each brokerage keeps: $11,250 x 30% = $3,375