Real Estate Commission Calculator
Calculate real estate agent commission on a home sale.
See how commission rates affect your net proceeds from selling your property.
Real estate agent commission is the fee paid to the agents involved in a property sale, traditionally calculated as a percentage of the final sale price. The structure changed significantly following the 2024 NAR settlement, which eliminated mandatory buyer’s agent commission rules.
Seller’s agent commission formula: Commission Amount = Sale Price × Commission Rate
Net proceeds to seller: Net Proceeds = Sale Price − Agent Commission − Closing Costs − Mortgage Payoff
Traditional commission structure (pre-2024):
- Total commission: 5–6% of sale price
- Typically split: 2.5–3% to listing agent + 2.5–3% to buyer’s agent
- Paid by seller from proceeds at closing
Post-2024 NAR settlement: Buyer’s agent commission must now be negotiated separately and disclosed in writing. Sellers are no longer required to offer buyer’s agent compensation through MLS.
What each variable means:
- Listing agent (seller’s agent) — represents the seller; markets the property, negotiates offers
- Buyer’s agent — represents the buyer; their commission is now a separate negotiation
- Commission split — the brokerage typically takes 30–50% of the agent’s commission; the agent receives the remainder
- Flat fee / discount brokers — charge $500–$3,000 flat or 1% instead of 2.5–3%; seller handles more of the process
- For Sale By Owner (FSBO) — no listing agent commission; may still offer buyer’s agent commission; saves 2.5–3% but requires significant personal time
Reference: commission by sale price at 5% total:
- $200,000 home: $10,000
- $350,000 home: $17,500
- $500,000 home: $25,000
- $750,000 home: $37,500
- $1,000,000 home: $50,000
Worked example: Home sells for $485,000. Listing agent: 2.5%, Buyer’s agent: 2.5% (offered by seller). Closing costs: $8,200. Remaining mortgage: $175,000.
- Total commission = $485,000 × 0.05 = $24,250
- Listing agent gets = $485,000 × 0.025 = $12,125
- Buyer’s agent gets = $12,125
- Net proceeds = $485,000 − $24,250 − $8,200 − $175,000 = $277,550
Negotiating the listing commission down to 1.5% (common with discount brokers) would add $4,850 to the seller’s net proceeds.