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Business finance / Real Estate Commission Calculator

Real Estate Commission Calculator

US rates · checked 20 Oct 2026
$

Enter a number of at least 0

%

Enter a number from 0 to 20%

Agreed in the listing agreement. Commission is negotiable.

%

Enter a number from 0 to 20%

Set to 0 if the seller is not paying the buyer's agent.

%

Enter a number from 0 to 100%

A 70/30 split means the agent keeps 70% of their side.

$

Enter a number of at least 0

Transaction or desk fee charged to the agent, if any.

Total commission
$21,000.00
5.25%of sale price
$7,700.00listing agent keeps
$0sale price $400,000.00
  • Listing side
  • Buyer's agent side
  • Seller keeps (before other costs)
Sale price$400,000.00
Listing side · 2.75%−$11,000.00
Buyer's agent side · 2.5%−$10,000.00
Seller proceeds after commission$379,000.00
Listing agent's share · 70% of $11,000.00$7,700.00
Listing broker keeps$3,300.00
Brokerage fee$0.00
Listing agent take-home (before tax)$7,700.00

Seller proceeds here are before the mortgage payoff, title, transfer taxes and other closing costs.

See breakdown

How the real estate commission calculation works

See the total commission on a home sale, how it splits between the listing and buyer's agents and their brokers, and what the seller nets.

  1. Each side's commission is price × its rate

    On a $400,000 sale, 2.75% to the listing side is $11,000 and 2.5% to the buyer's agent is $10,000. Together that is $21,000, or 5.25%.

  2. Each agent splits their side with a broker

    With a 70/30 split, the listing agent keeps $7,700 of the $11,000 and the brokerage keeps $3,300. Flat transaction fees come off the agent's share.

  3. The seller's figure is before other closing costs

    $400,000 − $21,000 = $379,000. The mortgage payoff, title, escrow and transfer taxes still come out of that.

  4. Rates are negotiable

    No law sets a commission rate. Since 17 Aug 2024, NAR rules require a written agreement with the buyer before touring a home, and offers to pay the buyer's agent can no longer be made on the MLS.

Worked example. A home sells for $400,000 with 2.75% to the listing side and 2.5% to the buyer's agent. Total commission is $21,000 and the seller has $379,000 before other costs. On a 70/30 split the listing agent takes home $7,700 and the broker keeps $3,300.

Real Estate Commission FAQ

How is real estate commission calculated?

Multiply the sale price by the commission rate. A 5.25% total on a $400,000 home is $21,000, usually divided between the listing side and the buyer's agent.

How much does a real estate agent take home?

Less than the headline rate. The agent shares their side with the brokerage under the split in their own contract, may pay desk or transaction fees, then pays income tax and self-employment tax. On the default $400,000 sale, a 70/30 split leaves the listing agent $7,700 before tax.

How does a broker commission split work?

The commission goes to the brokerage first, which pays the agent their agreed percentage. On a 70/30 split of $11,000, the agent gets $7,700 and the broker keeps $3,300.

Who pays realtor fees?

The seller pays the listing agent under the listing agreement. The buyer's agent is paid under the buyer's written agreement: the buyer may pay it, or the seller may agree to cover some or all of it in the deal. Since 17 Aug 2024, such offers can no longer be made on the MLS.

Is real estate commission negotiable?

Yes. NAR's consumer guide says compensation is negotiable and not set by law. The buyer agreement must state it clearly, as $0, a flat fee, a percentage or an hourly rate, not a range.

What is the average real estate commission?

There is no official or legal rate, so any 'average' is only a survey of past deals. Ask two or three agents for their rate in writing and enter each one here. The 2.75% and 2.5% defaults are an example, not a market average.

How much are realtor fees for the seller?

The listing side plus any buyer-agent pay the seller agrees to cover. With the defaults, that is $11,000 + $10,000 = $21,000 on a $400,000 sale. If the seller pays only the listing side, it is $11,000. For the full picture with payoff, title and taxes, use the seller net sheet calculator.

Sources: NAR: practice changes took effect 17 Aug 2024 · NAR: consumer guide to written buyer agreements

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