Real Estate Commission Calculator
Realtor fees for each side, agent splits and what you keep after the sale
A real estate commission is the sale price multiplied by the agreed rate for each side of the deal. On a $425,000 sale, 2.5% to the listing brokerage is $10,625; if the seller also agrees to pay 2.5% toward the buyer's agent, the total is $21,250, or 5% of the price. After $6,000 of other closing costs and a $230,000 mortgage payoff, the seller nets $167,750.
Last updated October 2026
Method: Commission = sale price × rate for each side, or a flat fee. Agent take-home = side commission × split − per-deal brokerage fee. Net proceeds = sale price − commissions − other closing costs − mortgage payoff. Buyer-agent compensation is a separate, optional seller cost, reflecting the NAR settlement practice changes in effect since August 17, 2024.
Included: Listing and buyer side as a percentage or flat fee, total cost and effective rate, brokerage and agent shares, seller net proceeds, a shortfall warning and total rates from 2% to 6% compared.
Not included: State transfer taxes and title fees (enter them as other costs), capital gains tax, referral fees, team splits and agent expenses. Rates shown are examples; commissions are negotiable.
🤝 Sale and commission terms
Use the expected contract price, not the list price.
Since August 17, 2024, offers to buyer agents are no longer made on the MLS. Whether the seller pays any of the buyer's agent is negotiated case by case. Pick None if the buyer pays their own agent.
Agent split with the brokerage (how much the agent keeps)
The split and fee come from the agent's contract with their brokerage. They change what the agent takes home, not what the seller pays.
🤝 Total commission paid by the seller
🧾 Where the commission goes
| Side | Brokerage keeps | Agent keeps | Side total |
|---|---|---|---|
| Listing | $3,187.50 | $7,437.50 | $10,625 |
| Buyer (seller-paid part) | $3,187.50 | $7,437.50 | $10,625 |
Assumes each agent keeps 70% of their side. Agents pay their own business expenses and taxes out of that amount.
💵 From sale price to net proceeds
| Sale price | $425,000 |
| − Listing commission | -$10,625 |
| − Buyer-side compensation | -$10,625 |
| − Other seller closing costs | -$6,000 |
| − Mortgage payoff | -$230,000 |
| = Net proceeds | $167,750 |
📊 The same sale at other total rates
$425,000 sale with your closing costs and payoff; only the all-in commission rate changes.
| Total rate | Commission | Net proceeds |
|---|---|---|
| 2% | $8,500 | $180,500 |
| 3% | $12,750 | $176,250 |
| 4% | $17,000 | $172,000 |
| 5% | $21,250 | $167,750 |
| 6% | $25,500 | $163,500 |
Real estate commission: how realtor fees are calculated and who pays them
Commission is usually the largest single cost of selling a home. This realtor commission calculator prices the listing side and any buyer-side compensation separately, shows how much of each check the agent keeps, and carries everything through to your net proceeds. For repairs, concessions and a full closing statement, continue with the Home Sale Proceeds Calculator.
The commission formula
Every number on this page comes from four short formulas. A percentage commission is figured on the sale price, a flat fee is used as entered, and the sides are added:
Side commission = Sale price × Rate Total commission = Listing side + Buyer side Agent take-home = Side commission × Split − Brokerage fee Net proceeds = Sale price − Total commission − Other costs − Payoff The effective rate is the total commission divided by the sale price. Use it to compare a percentage quote with a flat-fee quote on the same scale.
Worked example 1: a $425,000 sale with both sides paid by the seller
A seller lists at 2.5% and agrees in the purchase contract to pay 2.5% toward the buyer's agent. Other closing costs are $6,000 and the payoff is $230,000. These are the calculator's defaults.
- Listing side: $425,000 × 2.5% = $10,625.
- Buyer side: $425,000 × 2.5% = $10,625.
- Total commission: $21,250, an effective rate of exactly 5%.
- Net proceeds: $425,000 − $21,250 − $6,000 − $230,000 = $167,750.
- Listing agent's share at a 70/30 split: $7,437.50, with $3,187.50 staying at the brokerage.
Each half point of rate on this house is worth $2,125. Negotiating the listing side from 2.5% to 2% would raise the seller's net to $169,875.
Worked example 2: a $310,000 sale where the buyer pays their own agent
A seller with no mortgage lists a $310,000 home at 3% and offers nothing toward the buyer's agent. Other closing costs are $4,500. The listing agent works on an 80/20 split and pays the brokerage $395 per closed deal.
- Listing side: $310,000 × 3% = $9,300, which is also the total commission (3%).
- Agent take-home: $9,300 × 80% − $395 = $7,045. The brokerage keeps $2,255.
- Net proceeds: $310,000 − $9,300 − $4,500 = $296,200.
If the buyer then asks the seller to cover 2% of their agent's fee, the buyer side adds $6,200, the total becomes $15,500 (5%) and the seller nets $290,000. A buyer's agent on the same 80% split and $395 fee takes home $4,565 of that $6,200.
What changed after the 2024 NAR settlement
Listings on a multiple listing service (MLS) used to carry an offer from the seller's side to pay the buyer's broker. The National Association of Realtors settled the home-seller commission lawsuits known as the Sitzer-Burnett cases, agreeing to pay $418 million over about four years while denying wrongdoing. The court granted preliminary approval on April 24, 2024, and two practice changes took effect on August 17, 2024:
- No compensation offers on the MLS. Offers to pay a buyer's broker can still be negotiated off the MLS, and sellers can still offer buyer concessions, such as help with closing costs.
- Written buyer agreements. An MLS participant working with a buyer must sign a written agreement with that buyer, stating the compensation, before touring a home.
The U.S. Department of Justice, in a statement of interest filed in the Burnett case on November 24, 2024, read the settlement the same way: offers of compensation may continue and may be posted publicly, just not on an MLS. The same filing raised antitrust concerns about the rule requiring a written buyer agreement before any home tour. The buyer's agent can therefore be paid by the buyer, by the seller or by both, which is why the calculator asks for the buyer side separately and lets you set it to zero.
Commission at common prices and rates
Total commission for a range of prices and all-in rates. Use the 2% and 3% columns for one side and 4% to 6% when the seller pays both sides.
| Sale price | 2% | 3% | 4% | 5% | 6% |
|---|---|---|---|---|---|
| $250,000 | $5,000 | $7,500 | $10,000 | $12,500 | $15,000 |
| $350,000 | $7,000 | $10,500 | $14,000 | $17,500 | $21,000 |
| $450,000 | $9,000 | $13,500 | $18,000 | $22,500 | $27,000 |
| $550,000 | $11,000 | $16,500 | $22,000 | $27,500 | $33,000 |
| $750,000 | $15,000 | $22,500 | $30,000 | $37,500 | $45,000 |
| $1,000,000 | $20,000 | $30,000 | $40,000 | $50,000 | $60,000 |
One percentage point on a $1,000,000 home costs as much as four points on a $250,000 home, which is why sellers of higher-priced homes often negotiate the rate hardest.
How much do realtors make per sale?
The side commission is paid to the brokerage, which passes on a contractual share. BLS notes that brokers and agents earn most of their income from commissions, often divided among the buying agent, the selling agent, their brokers and their firms. Below, one side at 2.5% and the agent's share at four splits, with the number of such sides needed per year to reach the BLS median for sales agents ($52,830) in parentheses.
| Sale price (side at 2.5%) | 60% split | 70% split | 80% split | 90% split |
|---|---|---|---|---|
| $300,000 ($7,500) | $4,500 (11.7) | $5,250 (10.1) | $6,000 (8.8) | $6,750 (7.8) |
| $400,000 ($10,000) | $6,000 (8.8) | $7,000 (7.5) | $8,000 (6.6) | $9,000 (5.9) |
| $500,000 ($12,500) | $7,500 (7.0) | $8,750 (6.0) | $10,000 (5.3) | $11,250 (4.7) |
| $750,000 ($18,750) | $11,250 (4.7) | $13,125 (4.0) | $15,000 (3.5) | $16,875 (3.1) |
For May 2025, BLS reports a median annual wage of $52,830 for real estate sales agents, $73,220 for brokers and $57,400 for both groups combined ($27.59 an hour). The survey behind those figures does not cover self-employed agents, and the per-sale amounts above are gross: licensing, association and MLS dues, marketing and self-employment tax come out of them.
Flat-fee listings and other structures compared
A flat-fee listing charges a fixed amount instead of a percentage. On the $425,000 house from example 1, a $4,000 flat fee with the buyer paying their own agent cuts the seller's total to $4,000 (0.94%) and lifts net proceeds to $185,000, a gain of $17,250. If the seller still pays 2.5% toward the buyer's agent, the total is $14,625 (3.44%) and the net is $174,375. The table compares structures on a $500,000 sale with a $300,000 payoff and $7,500 of other costs.
| Structure (listing + buyer side) | Total commission | Effective rate | Seller net |
|---|---|---|---|
| 3% + 3% | $30,000 | 6.0% | $162,500 |
| 2.5% + 2.5% | $25,000 | 5.0% | $167,500 |
| 2.5% + 2% | $22,500 | 4.5% | $170,000 |
| 1% + 2.5% | $17,500 | 3.5% | $175,000 |
| $5,000 flat + 2.5% | $17,500 | 3.5% | $175,000 |
| 2.5% + nothing | $12,500 | 2.5% | $180,000 |
| $5,000 flat + nothing | $5,000 | 1.0% | $187,500 |
A lower fee is not automatically a better deal. Flat-fee and discount services range from a bare MLS entry to full service at a reduced rate, so pricing advice, photography, showings and negotiation may or may not be included. A seller who pays nothing toward the buyer's agent may also see buyers ask for a concession in their offer.
How to use this calculator
- Sale price: enter the price you expect to accept; commission is figured on the contract price, not the asking price.
- Listing brokerage: choose a percentage or a flat fee from your listing agreement or the quote you are comparing.
- Buyer side: enter what you agree to pay toward the buyer's agent, or choose None.
- Other costs and payoff: add title, escrow, transfer taxes and prorations as one figure, plus your lender's payoff amount.
- Agent split: open the panel to see what each agent keeps after the brokerage share and any per-deal fee.
Sellers use it to compare listing proposals and decide how much buyer-side compensation they can offer. Buyers use it to budget for paying their own agent. Agents use the split panel to see what a listing is worth before expenses.
Key terms
- Listing brokerage: the firm that represents the seller under a written listing agreement.
- Buyer's brokerage: the firm that represents the buyer under a written buyer agreement, which states its compensation.
- Offer of compensation: a seller-side offer to pay the buyer's broker; since August 17, 2024 it cannot appear on the MLS.
- Seller concession: money the seller puts toward the buyer's costs, written into the purchase contract.
- Split: the share of a side commission the brokerage pays its agent, such as 70/30 or 80/20.
- Amount realized: the IRS term for sale price minus selling expenses, the starting point for figuring gain.
Commissions and your taxes
IRS Publication 523, the guide for 2025 returns, lists sales commissions among the selling expenses of a home sale, and the amount realized equals the sale price minus those expenses. In example 1, the $21,250 of commission lowers the amount realized and therefore any gain. On a main home you owned and used as your residence for at least 24 months of the last five years, up to $250,000 of gain is excluded, or $500,000 for most married couples filing jointly. Rental and investment property follow different rules; the Capital Gains Tax Calculator estimates the federal tax on a taxable gain.
What moves the total, and how to negotiate it
- The price: a percentage commission rises with the price, so a tiered rate, lower above a threshold, is worth asking about on a higher-priced home.
- The buyer side: it is a separate decision. You can decline, offer a fixed amount or respond to a request in the purchase contract.
- The service package: compare quotes on the same services, and interview more than one brokerage.
- The fine print: listing agreements can add administrative or transaction fees and set how long the agreement runs.
Limitations
- Rates in the examples are illustrations, not market averages.
- Transfer taxes, title insurance and escrow fees vary by state and county and are entered as one figure; your settlement statement has the exact amounts.
- The split model uses one percentage and one flat fee per side, while real brokerage plans can include caps, tiers, team splits and referral fees.
- Capital gains tax and prorated property taxes are not modeled beyond what you enter.
Related calculators
- Full seller closing statement: Home Sale Proceeds Calculator. Buyer's side of the table: Closing Cost Calculator.
- Selling to rent instead: Rent vs. Buy Calculator and Rent Affordability Calculator.
- Keeping the property as a rental: Rent Increase Calculator and Rental Property Calculator.
- Commission outside real estate: Sales Commission Calculator.
Sources
- National Association of Realtors: NAR Settlement FAQs (settlement terms, $418 million payment, practice changes effective August 17, 2024).
- U.S. Department of Justice, Antitrust Division: Statement of Interest of the United States, Burnett v. National Association of Realtors (filed November 24, 2024).
- U.S. Bureau of Labor Statistics: Occupational Outlook Handbook, Real Estate Brokers and Sales Agents (May 2025 median wages, how agents are paid).
- Internal Revenue Service: Publication 523, Selling Your Home (selling expenses, amount realized, $250,000 and $500,000 exclusion).
⚠️ Common mistakes & edge cases
Assuming the seller automatically pays the buyer's agent
There is no MLS offer to rely on anymore. Who pays the buyer's agent is settled in the buyer agreement and the purchase contract, so treat the buyer side as its own decision.
Figuring commission on the list price
A home listed at $450,000 that sells for $425,000 pays 2.5% on $425,000, which is $10,625, not $11,250. Enter the price you expect to accept.
Thinking the agent keeps the whole side
At a 70/30 split, a $10,625 listing side leaves the agent $7,437.50 before business expenses and self-employment tax. The brokerage keeps the rest.
Comparing a flat fee and a percentage on price alone
A $4,000 flat fee is $6,625 cheaper than 2.5% on a $425,000 home. Check which services each option includes before treating the difference as pure savings.
Forgetting the payoff can exceed the equity
On a $300,000 sale with a $290,000 payoff, 5.5% in total commission and $5,000 of other costs leave a shortfall of $11,500. The calculator flags this in red.
Treating net proceeds as profit
Net proceeds are cash at closing. Your taxable gain is figured separately from your basis and the amount realized, which already reflects the commission.
❓ Frequently asked questions
How do you calculate a real estate commission?
Multiply the sale price by the commission rate for each side, then add the sides together. On a $425,000 sale, 2.5% to the listing brokerage is $10,625. If the seller also agrees to pay 2.5% toward the buyer's agent, that adds another $10,625, for a total of $21,250, or 5% of the price. A flat fee is added as a dollar amount instead.
How much is the realtor commission on a $400,000 house?
It depends on the rate you agree to. At 2.5% one side costs $10,000 and at 3% it costs $12,000. If the seller pays both sides, 5% in total comes to $20,000 and 6% comes to $24,000. Every half percentage point on a $400,000 sale is worth $2,000.
Who pays the buyer's agent after the NAR settlement?
It is negotiated. Since August 17, 2024, offers of compensation to buyer brokers can no longer be made on the MLS, and agents who work with buyers must sign a written agreement with the buyer before touring a home. The buyer can pay their agent directly, the seller can agree to pay some or all of it off the MLS or through a concession in the purchase contract, or the two can split it.
How much do realtors make per house sale?
Less than the commission suggests. A 2.5% side on a $400,000 sale is $10,000, but the agent shares it with the brokerage. At a 70/30 split the agent keeps $7,000 before paying their own expenses and taxes. For a full year, the U.S. Bureau of Labor Statistics reports a May 2025 median annual wage of $52,830 for real estate sales agents and $73,220 for brokers, based on an employer survey that does not cover self-employed agents.
Are realtor fees negotiable?
Yes. No law sets a commission rate. The listing rate is whatever you and the brokerage write into the listing agreement, and buyer-side compensation is set in the buyer's written agreement and in the offer terms. You can negotiate the percentage, a flat fee, a lower rate above a price threshold, or which services are included.
What is a flat-fee listing and how much can it save?
A flat-fee listing replaces the percentage with a fixed dollar amount, often for a narrower set of services. On a $425,000 sale, a $4,000 flat fee instead of 2.5% saves $6,625 on the listing side. If the buyer also pays their own agent, the seller's total falls from $21,250 to $4,000. Compare the services in writing before choosing on price alone.
Is real estate commission tax deductible when I sell my home?
Not as an itemized deduction, but it still lowers your tax. IRS Publication 523 treats sales commissions as selling expenses, and the amount realized is the sale price minus selling expenses, so the commission shrinks your gain. On a main home you owned and lived in for at least 24 months of the last five years, up to $250,000 of gain ($500,000 for most married couples filing jointly) can be excluded.
Does the commission come out of the sale price at closing?
Usually, yes. The commission is typically paid at closing from the seller's proceeds and itemized on the settlement statement, so you do not write a separate check. That is why the calculator subtracts it from the sale price along with other closing costs and the mortgage payoff.
What is a commission split between the broker and the agent?
Agents are licensed under a brokerage, and the side commission is paid to that brokerage first. The brokerage then pays the agent a share set in their contract, such as 70% or 80%, sometimes minus a per-transaction fee. With an 80% split and a $395 fee, a $9,300 listing side becomes $7,045 for the agent and $2,255 for the brokerage.
How do I estimate my net proceeds after paying commission?
Subtract the listing commission, any buyer-agent compensation you agree to pay, your other closing costs and the mortgage payoff from the sale price. With a $425,000 sale, $21,250 of commission, $6,000 of other costs and a $230,000 payoff, the seller nets $167,750. The Home Sale Proceeds Calculator gives a line-by-line version.
💡 Good to know
Half a point is real money
On a $425,000 sale every 0.5 percentage point of commission is $2,125; on a $750,000 sale it is $3,750. Negotiate the rate for each side separately.
Settle the buyer side before you list
Decide in advance whether you will contribute toward a buyer's agent and how much, so you can answer quickly when an offer asks. Put whatever you agree to in the purchase contract.
Commission lowers the taxable gain
Under IRS Publication 523, commissions are selling expenses that reduce the amount realized. Keep the settlement statement with your tax records.
Related Calculators
Home Sale Proceeds Calculator
Estimate your net proceeds after selling a home
Closing Cost Calculator
Estimate closing costs for buying or refinancing a home
Capital Gains Tax Calculator
Estimate federal tax on short- and long-term capital gains
Home Affordability Calculator
Find out how much house you can afford based on income & debt
Rent vs. Buy Calculator
Compare the cost of renting versus buying a home over time
Sales Commission Calculator
Calculate commission earned on sales