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A real estate commission is the fee paid at closing, usually a percentage of the sale price, split between the listing side and the buyer side and then between each agent and their broker. The calculator shows the gross commission, each side’s share and the agent’s net after the broker split.

Free Calculator

Real Estate Commission Calculator

Calculate real estate agent commissions, broker splits, and net proceeds from property sales. Essential for exam prep and professional use.

Commission Calculator
Enter sale details to calculate commissions
$

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

Total Commission$21,000.00
Listing Side$10,500.00
Buyer Side$10,500.00

Your Earnings (Buyer Side)

Your Commission$5,250.00
Broker Share$5,250.00

Seller Proceeds

Net to Seller$329,000.00

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

Total Commission = Sale Price x Commission Rate

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

Commission problems, worked out

The same arithmetic shows up on the licensing exam and on a closing statement: a percentage of the sale price, then a split. Five examples in the form the questions are usually asked.

A realtor earns 6% commission on every house she sells. How much does she earn on a $350,000 house?

$350,000 × 0.06 = $21,000 total commission. What she personally keeps depends on the co-op split with the other side and her split with her broker; the question as asked wants $21,000.

A broker receives a 4% commission on a $285,000 sale. Find the amount.

$285,000 × 0.04 = $11,400.

A broker receives a commission of 3.5% on a $500,000 sale. Find the amount.

$500,000 × 0.035 = $17,500.

You sell a home for $143,000 at a 5% commission rate. What is the commission?

$143,000 × 0.05 = $7,150.

A $400,000 home sells with a 6% total commission, split evenly between the listing and buyer brokerages. The buyer’s agent is on a 70/30 split with her broker. What does she take home?

Total: $400,000 × 0.06 = $24,000. Buyer side: $12,000. Agent’s 70%: $12,000 × 0.70 = $8,400. The broker keeps $3,600.

Studying for the exam? Commission, proration, interest and area problems with step-by-step solutions are at real estate math practice, and the timed version at the math drill.

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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Key facts

Commission: how it is calculated and what people ask

How is a real estate commission split?

The seller pays the total commission at closing. It is split between the listing side and the buyer side as the listing agreement and the buyer agreement say, then each agent splits their side with their broker. A 5% commission on $500,000 is $25,000; a 50/50 side split gives each side $12,500 before the broker split.

What does the agent actually take home?

The agent’s share is their side minus the broker split, then minus franchise or transaction fees, and taxes. On a $12,500 side with a 70/30 broker split, the agent’s gross is $8,750. Brokerages with a 100% plan charge a flat monthly or per-transaction fee instead of a percentage.

Are commissions negotiable?

Yes. Commission rates are set by agreement between each client and their brokerage, and there is no legal or industry standard rate. Since 2024, buyer agreements state the buyer-side compensation in writing before touring, and any seller contribution to the buyer’s side is negotiated in the offer.

Last reviewed September 8, 2026 by the EstatePass editorial team. Formulas and program limits are checked against the published rules; figures on this page are arithmetic, not market statistics.

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