Real Estate Commission Calculator
Calculate real estate agent commissions and net proceeds from property sales
Calculate Real Estate Commission
Final selling price of the property
Listing agent commission
Buyer's agent commission
Example Calculation
Standard Home Sale
Sale Price: $500,000
Commission Rate: 6% (3% seller agent + 3% buyer agent)
Commission Split: Yes
Calculation Results
Total Commission: $500,000 × 6% = $30,000
Seller Agent: $500,000 × 3% = $15,000
Buyer Agent: $500,000 × 3% = $15,000
Net to Seller: $470,000
Commission Rate Guide
Commission Tips
Commission rates are negotiable
Get quotes from multiple agents
Consider discount brokers
Factor commission into listing price
Understand what services are included
Understanding Real Estate Commissions
What is Real Estate Commission?
Real estate commission is the fee paid to real estate agents for their professional services in facilitating a property transaction. It's typically calculated as a percentage of the final sale price and is only paid upon successful completion of the sale.
Who Pays the Commission?
- •Seller pays commission at closing
- •Cost is deducted from sale proceeds
- •Often factored into listing price
- •Indirectly paid by buyer through purchase price
Commission Formula
Commission = Sale Price × Commission Rate ÷ 100
- Sale Price: Final selling price of property
- Commission Rate: Percentage agreed upon (typically 4-7%)
- Split: Often divided between buyer and seller agents
Note: Commission rates are negotiable and vary by market, property type, and agent
Services Included
- • Property marketing
- • MLS listing
- • Showings and open houses
- • Negotiation
- • Transaction management
Negotiation Tips
- • Compare multiple agents
- • Understand market conditions
- • Consider property complexity
- • Evaluate agent experience
- • Get written agreements
Cost Factors
- • Property value
- • Local market rates
- • Agent experience level
- • Marketing complexity
- • Transaction difficulty