Real Estate Commission Calculator
Calculate agent commission on a property sale.
See the split between listing and buyer agents and your net proceeds.
Real estate commissions are typically paid by the seller and split between the listing agent and the buyer’s agent.
Standard commission rates vary by market but generally fall between 5% and 6% of the sale price. Since 2024, many markets have shifted toward more negotiable and transparent commission structures.
How the split works:
- The total commission is agreed upon between the seller and listing agent.
- That total is then split between the listing agent’s brokerage and the buyer’s agent’s brokerage.
- A common split is 50/50, but it can vary (e.g., 60/40 or other arrangements).
- Each agent then splits their share with their brokerage according to their personal agreement.
Example: A home sells for $400,000 with a 5.5% total commission. Total commission = $400,000 × 5.5% = $22,000. If split 50/50, each side receives $11,000.
Seller’s net proceeds = Sale price − Commission − Other closing costs.
Other closing costs the seller may owe include title insurance, transfer taxes, attorney fees, and any outstanding mortgage balance. These vary by state and locality but typically range from 1% to 3% of the sale price.
Negotiation tips:
- Commission rates are always negotiable. There is no “standard” rate set by law.
- Some agents offer reduced rates for higher-priced properties.
- Flat-fee and discount brokerages are an alternative to percentage-based commissions.