Real Estate Commission Calculator
Calculate total realtor fees and commission splits for your property sale.
Calculation Summary
Understanding Real Estate Commissions
Selling a home is one of the most significant financial transactions you'll ever undertake. One of the largest closing costs is the real estate commission, which is typically paid by the seller to both the listing agent and the buyer's agent. Use our calculator above to estimate these costs and plan your net proceeds effectively.
How are real estate commissions calculated?
Commission is usually a percentage of the final sale price of the home. While 5% to 6% is a common industry standard, these rates are negotiable. The total commission is often split 50/50 between the listing brokerage and the buyer's brokerage.
Example Calculation
If you sell a property for $400,000 with a 6% commission rate:
- Total Commission: $400,000 x 0.06 = $24,000
- Brokerage Split: Usually $12,000 to each side.
- Net Proceeds: $376,000 (before other closing costs like taxes and title fees).
The Agent/Broker Split
Individual real estate agents usually don't keep the entire commission. They have a "split" agreement with their managing broker. For example, if an agent is on a 70/30 split, they receive 70% of the commission generated, while the brokerage keeps 30% to cover office expenses, marketing, and insurance.