Calculate total commissions, agent splits, and net proceeds.
% of commission that goes to the agent.
Total Commission Amount:$0.00
Agent's Share:$0.00
Brokerage's Share:$0.00
Estimated Seller Net (After Comm.):$0.00
Understanding Real Estate Commissions
Selling a property involves various costs, with the real estate commission usually being the largest expense for the seller. A typical commission ranges between 5% and 6% of the final sale price, though this is always negotiable between the seller and the listing broker.
How is the Commission Divided?
The total commission paid by the seller is typically split between two parties:
The Listing Brokerage: Represents the seller.
The Buyer's Brokerage: Represents the buyer.
Furthermore, each individual real estate agent has a "split" agreement with their respective brokerage. For example, if an agent is on a 70/30 split, they keep 70% of their side of the commission, while the brokerage retains 30% to cover overhead, insurance, and marketing costs.
Example Calculation
If you sell a home for $400,000 with a 6% commission:
Total Commission: $400,000 × 0.06 = $24,000
Buyer/Seller Split (usually 50/50): $12,000 to each side.
In most traditional real estate transactions, the seller pays the entire commission. This fee is deducted from the proceeds of the sale at the closing table. However, it is important to remember that the buyer is technically "funding" the commission through the purchase price of the home.
function calculateCommission() {
var salePrice = parseFloat(document.getElementById('salePrice').value);
var commRate = parseFloat(document.getElementById('commRate').value);
var agentSplit = parseFloat(document.getElementById('agentSplit').value);
// Validation
if (isNaN(salePrice) || salePrice <= 0) {
alert("Please enter a valid property sale price.");
return;
}
if (isNaN(commRate) || commRate 100) {
alert("Please enter a valid commission rate (0-100).");
return;
}
if (isNaN(agentSplit) || agentSplit 100) {
// Default to 100% if split is not provided
agentSplit = 100;
}
// Calculations
var totalComm = salePrice * (commRate / 100);
var agentShare = totalComm * (agentSplit / 100);
var brokerShare = totalComm – agentShare;
var sellerNet = salePrice – totalComm;
// Formatting Currency
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
});
// Displaying Results
document.getElementById('resTotalComm').innerText = formatter.format(totalComm);
document.getElementById('resAgentShare').innerText = formatter.format(agentShare);
document.getElementById('resBrokerShare').innerText = formatter.format(brokerShare);
document.getElementById('resSellerNet').innerText = formatter.format(sellerNet);
// Show the results div
document.getElementById('resultsArea').style.display = 'block';
}