This calculator is designed to help real estate agents, brokers, and clients understand the commission structure in a property sale. It breaks down the total commission earned and how it's split between the listing agent's brokerage and the buyer's agent's brokerage.
How it Works:
The calculation is based on three key inputs:
Property Sale Price: This is the final agreed-upon price at which the property was sold.
Total Commission Rate: This is the percentage of the sale price that the seller agrees to pay as commission to the real estate agents involved in the transaction. This rate is typically negotiated between the seller and the listing agent's brokerage.
Buyer's Agent Commission Split: This percentage determines how much of the total commission is allocated to the buyer's agent's brokerage. Often, the total commission is split equally between the listing agent's brokerage and the buyer's agent's brokerage (a 50/50 split), but this can vary based on agreements and local market practices.
The Calculations:
The calculator performs the following steps:
Calculate Total Commission Amount:
Total Commission Amount = Property Sale Price × (Total Commission Rate / 100)
The results show the total dollar amount of commission earned on the sale, how much of that goes to the buyer's agent's brokerage, and how much remains for the listing agent's brokerage. These figures are then typically split further within each brokerage between the agent and the broker.
Use Cases:
Agents: Estimate potential earnings and commission splits.
Brokers: Understand transaction revenue and agent payouts.
Sellers: Clarify the commission costs associated with selling their property.
Buyers: Gain insight into the commission structure they are indirectly involved with.
function calculateCommission() {
var propertyPrice = parseFloat(document.getElementById("propertyPrice").value);
var commissionRate = parseFloat(document.getElementById("commissionRate").value);
var buyerAgentSplit = parseFloat(document.getElementById("buyerAgentSplit").value);
var resultDiv = document.getElementById("result");
// Clear previous results and error messages
resultDiv.innerHTML = "";
// Input validation
if (isNaN(propertyPrice) || propertyPrice <= 0) {
resultDiv.innerHTML = "Please enter a valid property sale price.";
return;
}
if (isNaN(commissionRate) || commissionRate 100) {
resultDiv.innerHTML = "Please enter a valid total commission rate (0-100%).";
return;
}
if (isNaN(buyerAgentSplit) || buyerAgentSplit 100) {
resultDiv.innerHTML = "Please enter a valid buyer's agent split (0-100%).";
return;
}
var totalCommissionAmount = propertyPrice * (commissionRate / 100);
var buyerAgentCommissionAmount = totalCommissionAmount * (buyerAgentSplit / 100);
var listingAgentCommissionAmount = totalCommissionAmount – buyerAgentCommissionAmount;
// Format currency for display
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
maximumFractionDigits: 2,
});
resultDiv.innerHTML = "