Real Estate Commission Calculator

Property Price
Commission Percentage
Total Commission
Total Amount Seller Receives

Real estate commission calculator to project your profits

Real estate transactions often involve hefty sums of money, and a significant portion of that can go to real estate agents in the form of commissions. For sellers, agents' commissions can be one of the largest expenses during the sale of a property. 

For buyers, understanding how commissions work can give insight into the buying process and the costs that may indirectly influence the price of a property. This is why a real estate commission calculator can be an invaluable tool for both buyers and sellers.

What is a real estate commission calculator?

A real estate commission calculator is a digital tool that helps to estimate the commission a real estate agent or broker would earn from the sale or purchase of a property. 

A real estate commission calculator requires certain inputs, such as the sale price of the property and the agreed-upon commission rate, to provide an estimated commission amount.

Why use a real estate commission calculator?

  • Transparency: This tool offers clarity about potential costs associated with selling a property. Sellers can get an estimate of what they might pay in agent commissions, allowing them to factor that into their net proceeds from the sale.
  • Budgeting: For both buyers and sellers, understanding the commission can help in budgeting for other related expenses, like closing costs, home improvements, or relocation expenses.
  • Negotiation: Knowing the potential commission can also be a tool for negotiation. Sellers might negotiate a lower commission rate with their agent, or buyers might use the information to discuss the property's price.
  • Ease of use: Most commission calculators are straightforward and user-friendly. Simply input the necessary details and receive an instant estimate.

How to calculate real estate commission?

Calculating real estate commission is relatively straightforward. Typically, the commission is a percentage of the property's sale price, though the specific percentage can vary depending on the agreement between the homeowner and the real estate agent, and local customs or standards. 

Here's a step-by-step guide:

1. Determine the commission percentage

The first step is to know the commission percentage. This is usually set out in the listing agreement between the homeowner and the listing agent. Common commission rates in the U.S. have traditionally ranged from 5% to 6% of the sale price, but this can vary.

2. Sell the property

The actual sale price of the property might differ from the listing price. The sale price is the amount you'll use to calculate the commission.

3. Calculate the total commission

  • Multiply the sale price of the property by the commission percentage.
  • For example, if a house sells for $300,000 and the commission rate is 6%, the total commission would be: $300,000 × 0.06 = $18,000

4. Splitting the commission (if applicable)

  • Often, the commission is split between the listing agent and the buyer's agent. If each gets an equal share, you'd divide the total commission by two.
  • Using the above example of $18,000 commission: $18,000 ÷ 2 = $9,000
  • So, both the listing agent and the buyer's agent would receive $9,000 each.

5. Agency split (if applicable)

  • Agents typically work for a brokerage. Depending on their arrangement with the brokerage, there might be a further split of the commission between the agent and the brokerage. For instance, if there's a 70-30 split between the agent and the brokerage, the agent gets 70% of the commission, and the brokerage gets 30%.
  • Using the example of $9,000 for an agent: Agent's share: $9,000 × 0.70 = $6,300 Brokerage's share: $9,000 × 0.30 = $2,700

This is a basic overview of how real estate commissions are typically calculated. Remember, the exact details can vary depending on the specifics of any agreement and local practices. Always review contracts and agreements closely, and consult with a professional when in doubt.

How does a real estate commission calculator work?

While the specifics can vary from one calculator to another, here's a general way they function:

  • Input sale price: This is the expected or agreed-upon price of the property.
  • Input commission rate: This is the percentage that the agent or broker will receive. It can vary based on region, agency, or individual agent agreements. In many places, the standard is around 5-6% of the sale price, but it can differ.
  • Calculate: Once you input the necessary data, the calculator will multiply the sale price by the commission rate to provide an estimated commission amount.
  • Consider split commissions: Some calculators may also consider split commissions between buyer's and seller's agents. Typically, the commission is divided equally, but again, this can vary based on specific agreements.

Real estate commission formula

The formula to calculate the real estate commission is quite simple. It's based on the sale price of the property and the commission rate agreed upon with the real estate agent.


Real Estate Commission = Sale Price × Commission Rate


  • Sale Price is the final or agreed-upon price at which the property is sold.
  • Commission Rate is the percentage rate agreed upon with the real estate agent. It's expressed as a decimal in the formula. For example, a 6% commission rate would be represented as 0.06.

Example: Let's say you're selling a property for $500,000, and the agreed commission rate with your agent is 6%.

Using the formula:

\text{Real Estate Commission} = $500,000 \times 0.06

\text{Real Estate Commission} = $30,000

In this example, the real estate commission would be $30,000.

Note: If there are two agents involved (a buyer's agent and a seller's agent), the commission is often split between them. In such cases, each agent might get half of the commission, though the exact split can vary based on their agreement.


How accurate is a real estate commission calculator?

While the calculator provides a good estimate based on the input values, the actual commission can vary based on various factors, including specific agreements with agents, regional norms, or bonuses.

Are there typically two commissions – one for the buyer's agent and one for the seller's agent?

Often, the total commission is split between the seller's agent and the buyer's agent. This split is usually 50/50, but it can vary based on specific agreements or regional practices.

Does the buyer or the seller pay the commission?

Typically, the seller pays the commission, which is then split between both the buyer's and the seller's agents. However, this can vary depending on regional practices or specific contractual agreements.

Can commission rates be negotiated?

Yes, commission rates are often negotiable, though it may depend on the agent, the agency they work for, market conditions, and the property in question.

Are there other costs involved in selling a property apart from the agent's commission?

Yes. Apart from the agent's commission, sellers might incur other costs, such as closing costs, home inspections, repairs, staging, and more.

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