What this calculator does
A real estate commission is usually a percent of the sale price. It's divided between the listing brokerage and the buyer's brokerage, and each brokerage then pays its agent a share under their own agreement. This calculator follows the money through each step. All splits are editable examples; commissions are set by agreement, not by law.
How it's calculated
Listing brokerage = total × listing share %; buyer's brokerage = total − listing brokerage
Agent's take = brokerage amount × agent's split %
Seller's net = price − commission the seller pays
Worked example
A $400,000 sale at a 6% commission is $24,000. Split 50/50, each brokerage gets $12,000. With a 70% agent split, each agent takes home $8,400 before expenses and taxes, and each broker keeps $3,600. If the seller pays both sides, the seller nets $376,000 before other costs. If the buyer pays their own agent, the seller pays $12,000 and nets $388,000.
Commission at common rates
These are math examples, not typical or recommended rates.
| Price | 5% | 5.5% | 6% |
|---|---|---|---|
| $250,000 | $12,500 | $13,750 | $15,000 |
| $300,000 | $15,000 | $16,500 | $18,000 |
| $400,000 | $20,000 | $22,000 | $24,000 |
| $500,000 | $25,000 | $27,500 | $30,000 |
| $750,000 | $37,500 | $41,250 | $45,000 |
| $1,000,000 | $50,000 | $55,000 | $60,000 |
What changed in 2024
After the National Association of Realtors settlement, two practice changes took effect on August 17, 2024: offers of compensation to buyer's agents are no longer allowed on MLS listings, and agents working with a buyer must have a written agreement with the buyer before touring a home. NAR's consumer guide says compensation is negotiable and not set by law, that the agreement must state a specific amount (for example a flat fee or a percent, not a range or open-ended), and that buyers can still ask the seller to pay their agent. That's why the calculator lets you choose who pays the buyer's agent.
Limitations
- Agents' takes are before their own fees, franchise fees, expenses and income tax.
- Some agreements use flat fees or tiered rates; enter the equivalent percent.
- Other selling costs and the mortgage payoff aren't included here; the home sale calculator adds them.