Real estate commission calculator

How the calculation works

The seller pays a total commission rate on the sale price — commonly 5%–6% — and that total is divided between the listing side and the buyer side. Each side then cascades through three deductions before the agent sees a dollar:

1. Side gross commission: home price × (total rate × each side's share). On a 5% total commission split 50/50, each side earns 2.5% of the price.
2. Broker split: the agent's share of the side gross. Corporate plans let agents keep 85% once they hit a cap, traditional brokerages take 50%, and 70% sits between the two.
3. Franchise and flat fees: a percent of the agent's post-split gross (the franchise fee), then flat per-deal costs like the MLS fee, E&O insurance, and transaction coordination.

Because both sides of the table are shown, you can price yourself as either the listing or the buyer agent, and see the seller's total check at the top. The net figure is take-home before income tax — agents are self-employed, so the SE tax still applies: run the net through the S-corp savings calculator or the freelance rate calculator if you're converting a few deals per year into a target hourly rate. Our self-employment tax guide walks through the 15.3% SE tax that comes after these broker deductions.

Worked example

A $400,000 home sells with a 5% total commission split 50/50 between the sides. Both agents are on a 85/15 split at a brokerage with a 6% franchise fee and $500 in MLS/transaction fees per deal:

So on a $20,000 seller commission, each agent nets $7,490 before tax, and the $20,000 headline becomes $14,980 across both agents. If the same deal had been a traditional 50/50 broker split, each agent would net just $4,500 — the broker split is the biggest lever in the entire stack.

Assumptions and limitations

• The "5% commission" post-settlement world. Since the 2024 NAR settlement, seller-offered buyer commissions are not guaranteed — the buyer-side rate is whatever the buyer agreement says. Run the buyer side at 0% to model a no-co-op sale.
• Capped plans behave differently in practice. A capped 85% split only applies once you've paid through the annual cap; early in the year your effective split may be much lower. This calculator applies one split to the whole deal.
• Referral fees aren't modeled. If 25% of the deal goes to a referral, it lands between the agent gross and the broker split — deduct it mentally from the agent gross.
• Net is before income tax. Agents are generally 1099 contractors; SE tax plus federal and state income tax comes out of this number. Team splits and house marketing credits work the same way as other per-deal deductions.

Frequently asked questions

How much of a 5% commission does the agent actually keep?

It depends on the broker split. On a $400,000 sale at 5% split 50/50, the agent's side gross is $10,000. Keeping 85% of that with a 6% franchise fee and $500 in flat fees leaves $7,490. Traditional 50/50 brokerage leaves $4,500 on the same deal. Roughly 60–75% of the headline rate is a typical real-world take.

Who pays the commission on a home sale?

The seller, in most U.S. transactions — the listing agreement sets a total rate, and the listing brokerage pays the buyer brokerage out of it. Since the 2024 NAR settlement, that buyer-side offer is negotiable and must be separately agreed, so buyer agents confirm their compensation in a written buyer agreement.

What are the typical broker split and franchise fee levels?

Three tiers cover most agents: 85 keep-and-cap plans (agents pay a monthly desk fee plus a cap, then keep 85–100%), 70/30 mid-tier plans, and traditional 50/50 splits with more brokerage support. Franchise fees of 5–8% of the agent gross are common at national brands.

Should commissions be calculated on the sale price or the net price?

On the sale (contract) price. Credits and concessions reduce the agent's gross only if the listing agreement says so. A price-reduction credit to the buyer does not automatically reduce the commission basis — check your specific listing agreement.