Real Estate Commission Calculator
Calculate real estate agent commission from sale price and rate.
Returns listing and buyer agent fee split plus seller net proceeds after total closing costs.
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.
For Sale By Owner (FSBO)
Selling without a listing agent saves the listing-side commission entirely (typically 2.5 to 3% of sale price). On a $400,000 home that is $10,000 to $12,000 back in the seller’s pocket. The trade-off is real: the seller handles photography and listing copy, MLS access (usually via a flat-fee MLS service for $300 to $500), showings and open houses, offer negotiation, contract paperwork, and coordination with the title company. Most sellers do not have the time, market knowledge, or stomach for the negotiation, which is why FSBO sells only about 7 percent of US homes. The model works best for sellers who already have a buyer lined up (family member, neighbor, rental tenant), live in a hot market where homes sell on price alone, or have prior real-estate experience.
Reference: total commission by sale price at 5%
| Sale price | Total commission at 5% |
|---|---|
| $200,000 | $10,000 |
| $350,000 | $17,500 |
| $500,000 | $25,000 |
| $750,000 | $37,500 |
| $1,000,000 | $50,000 |
| $1,500,000 | $75,000 |
These are the dollar amounts at stake before any negotiation. Each half-percentage-point shaved off at the high end is real money.
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This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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