Real Estate Commission Calculator
Calculate real estate agent commissions, broker splits, and net proceeds from property sales. Essential for exam prep and professional use.
The total sale price of the property
Typical range: 5% - 6%
Percentage to listing agent's brokerage
Your split with your broker (buyer side)
Commission Breakdown
Your Earnings (Buyer Side)
Seller Proceeds
How It Works
1. Enter Sale Details
Input the property sale price and total commission rate agreed upon with the seller.
2. Set Your Splits
Enter the listing/buyer side split and your personal commission split with your broker.
3. Get Your Results
Instantly see your commission, broker share, and net proceeds to the seller.
How Commission Works
The Commission Formula
Example Calculation
For a $350,000 home with a 6% commission rate:
- - Total Commission: $350,000 x 6% = $21,000
- - Listing Side (50%): $21,000 x 50% = $10,500
- - Buyer Side (50%): $21,000 x 50% = $10,500
- - Your Share (50% of buyer side): $10,500 x 50% = $5,250
Frequently Asked Questions
Understanding Real Estate Commission Calculations
Real estate commissions represent one of the most significant costs in any property transaction. Whether you're a new agent trying to understand your potential earnings, a seller calculating your net proceeds, or a student preparing for your real estate licensing exam, our free commission calculator helps you quickly determine how commissions are split among all parties involved.
How Real Estate Commission Splits Work
When a property sells, the total commission (typically 5-6% of the sale price) is first divided between the listing brokerage and the buyer's agent brokerage. This split is usually 50/50 but can vary based on the listing agreement. Each brokerage then splits their portion with their respective agent according to the agent's commission agreement, which can range from 50/50 for new agents to 90/10 for top producers.
Why Commission Calculations Matter for Real Estate Exams
Commission math problems appear frequently on state real estate licensing exams. You'll need to calculate total commission from sale price and rate, determine individual agent earnings from splits, and sometimes work backward to find sale price from commission amounts. Mastering these calculations is essential for passing your exam and succeeding in your real estate career.
Commission Changes and Industry Trends
The real estate industry continues to evolve, with new commission models and disclosure requirements emerging. Understanding traditional commission structures while staying informed about industry changes will help you provide better service to clients and navigate your career successfully. Use this calculator to model different scenarios and understand how various factors affect your potential earnings.
Practice Commission Questions
Master commission calculations with our practice exam questions.
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