Real Estate Commission Calculator
Estimate your agent fees and net proceeds instantly
Understanding Real Estate Commissions
Selling a home is one of the most significant financial transactions you will ever undertake. A major component of the closing costs is the real estate commission. This fee is paid to the professionals who facilitate the sale, including both the listing agent (representing the seller) and the buyer's agent.
How is Commission Calculated?
In most standard residential transactions, the commission is calculated as a percentage of the final sales price. While the percentage is technically negotiable, it typically ranges between 5% and 6% in the United States. This total fee is usually split 50/50 between the two brokerages involved.
Calculation Example
If you sell your home for $500,000 with a 6% commission rate:
- Total Commission: $500,000 × 0.06 = $30,000
- Listing Agent Split (3%): $15,000
- Buyer's Agent Split (3%): $15,000
After paying the commission, the seller would receive $470,000 (excluding other closing costs like taxes, title insurance, and escrow fees).
Who Pays the Commission?
Traditionally, the seller pays the entire commission fee out of the proceeds of the sale. However, recent legal changes and market shifts are making these fees more transparent, sometimes allowing for different structures where buyers may cover their own agent's costs. Always consult your listing agreement for specific terms.