Real Estate Commission Calculator
Estimate the total real estate commission, how it splits between agents, and your net proceeds from a home sale.
Formulas Used
Total Commission = Sale Price × (Commission Rate ÷ 100)
Listing Agent Commission = Total Commission × (Listing Split % ÷ 100)
Buyer's Agent Commission = Total Commission × ((100 − Listing Split %) ÷ 100)
Net Proceeds = Sale Price − Total Commission − Mortgage Balance − Other Closing Costs
Example: $450,000 sale at 5.5% commission = $24,750 total. With a 50/50 split, each agent earns $12,375. After a $200,000 mortgage and $5,000 closing costs, net proceeds = $220,250.
Assumptions & References
- The default commission rate of 5–6% reflects the traditional U.S. market average, though rates are fully negotiable and vary by region and agent.
- Following the 2024 NAR settlement (effective August 2024), buyer's agent compensation is no longer required to be offered through the MLS; buyers may negotiate compensation directly with their agent.
- Commission is typically paid by the seller from sale proceeds at closing.
- A 50/50 split between listing and buyer's agent is a common default, but splits vary widely (e.g., 60/40, 55/45).
- "Other closing costs" may include title insurance, transfer taxes, attorney fees, prorated property taxes, and home warranty costs — typically 1–3% of the sale price for sellers.
- This calculator does not account for capital gains taxes, agent brokerage splits, or franchise fees.
- Reference: National Association of Realtors (NAR); CFPB — Closing Costs.