How the real estate commission calculator works
When you sell a home, real estate agents typically earn a commission based on the sale price. This calculator estimates total commission, splits between listing and buyer agents, and seller net proceeds after fees. Enter the home price, commission rate, and listing agent share percentage.
Commission is one of the largest costs in a home sale. Sellers in markets with VAT on agent fees can use the real estate commission VAT calculator. To work backward from a target net amount, try the sale price calculator. Buyers financing the purchase can estimate monthly payments with the mortgage calculator. If you finance the commission into your loan, the true cost of real estate commission calculator shows how mortgage interest increases the lifetime cost.
Real estate commission formulas
Total commission is a percentage of the sale price. Seller net proceeds subtract commission from the sale price. Agent fees split the total based on the listing and buyer agent agreement:
Worked example: $400,000 home, 6% commission, 50/50 split
A home sells for $400,000 with a 6% total commission split evenly between listing and buyer agents:
- Total commission: $400,000 x 6% = $24,000
- Seller net proceeds: $400,000 - $24,000 = $376,000
- Listing agent fee: $24,000 x 50% = $12,000
- Buyer agent fee: $24,000 x 50% = $12,000
Actual commission rates and splits are negotiable and vary by market. Some sellers offer buyer agent incentives or use flat-fee listing services. Use the sale price calculator if you need to hit a specific net after commission.
Who pays real estate commission?
Traditionally the seller pays both listing and buyer agent commissions from sale proceeds, though practices are changing in some markets. Commission is separate from closing costs, transfer taxes, and mortgage payoff amounts. Confirm terms in your listing agreement before listing.
Frequently asked questions
How is real estate commission calculated?
What is a typical commission rate?
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Does commission come out of seller proceeds?
Are commission rates fixed by law?
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Resources and references
The formulas and methods in this calculator were checked against these independent sources.