Realtor commission calculator
Gross commission, the brokerage's share and what reaches you before taxes. Commissions are negotiable and set by agreement.
Realtor commission calculator
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| Gross commission | $15,000 |
|---|---|
| Brokerage share | $3,000 |
| Transaction fee | $500 |
| Agent commission before taxes | $11,500 |
Estimates for illustration. Check the assumptions before using these figures. Commissions are negotiable and set by agreement.
Plan the year from this number in the app
In My Virtual Boss, the Income Calculator starts from your net per sale and turns your income goal into weekly calls and visits. See it in the app
Free to start. Premium in the app: $24.99/month.
How agent commission is calculated
Start with your side of the deal, take out the brokerage's share, then any fees.
- Gross commission
Your side's agreed commission on the sale price. For a listing, that's set in the listing agreement. For a buyer, in the buyer agreement.
Sale price × your side's commission %
- Brokerage share
The part of the gross that goes to your brokerage under your split.
Gross × (100% − your share %)
- Transaction fee
A flat fee some brokerages charge per closing. Enter 0 if yours doesn't.
- Agent commission before taxes
What reaches you. Income tax and self-employment tax come out later.
Gross × your share % − transaction fee
Worked example: $500,000 sale
3% agreed for your side, an 80% share after the split and a $500 transaction fee.
- Gross commission, 3%
- $15,000
- Brokerage share, 20%
- −$3,000
- Transaction fee
- −$500
- Agent commission before taxes
- $11,500
Commissions are negotiable
No rate is standard. The listing agreement sets what the seller pays, and a written buyer agreement sets what the buyer's agent is paid and by whom.
Since August 17, 2024, offers of buyer-agent compensation can't be made on the MLS, and MLS participants working with a buyer need a written agreement before touring a home.
Source on buyer agreements: National Association of Realtors practice changes, effective August 17, 2024.
From one commission to a year's plan
There's no separate commission calculator in the app. The Income Calculator starts from your Net per Sale, the number this calculator gives you, and turns your income goal into weekly activities.
The seller net sheet in the app also shows the commission as a line in the seller's cost breakdown.
on the Tools tab. Income Calculator is one of them.
When agents run commission
Before the listing appointment
Know what different commission terms mean for you before the seller asks to negotiate.
Signing a buyer agreement
See what the compensation you're proposing nets you after the split and fees.
Planning the month
Add up what's under contract and see what reaches you before taxes.
Run the numbers here. Run your day in the app
- Today's schedule, already plannedOpen the app and today's schedule is waiting, from 8:00 AM to 7:00 PM. It says what to work on and when. Add your own tasks alongside it.
- Follow-ups in your MVB CRMSet a date and time for each follow-up. When it's due, the app asks “Did you follow up?” with a push reminder. Call, text or email in one tap.
- Open-house sign-ins, with the Starter KitWith the Digital Lead Capture Kit, visitors tap the registration card to submit their details on their own phones. Review submissions and manage your follow-up in the app.
- Owner lookup, price shown in the appOwner phone numbers and email for a property, charged only when the owner is found.
- Robert's trainingRobert Ernst, a Florida broker and real estate instructor, on video for each part of the day. Part of Premium.
Free to start. Premium in the app: $24.99/month.
3 follow-ups and 6 high-priority tasks today
Questions agents ask
How is real estate commission calculated?
Multiply the sale price by the agreed commission for your side to get the gross. Your brokerage keeps its share under your split, and any transaction fee comes out after that.
Who pays the real estate commission?
It's set by agreement. The listing agreement says what the seller pays. A written buyer agreement says what the buyer's agent is paid and by whom, which can include the seller through the contract.
Is there a standard commission rate?
No. Commissions are negotiable and set by agreement between the client and the brokerage.
What is a commission split?
The share of each commission you keep, with the rest going to your brokerage. On an 80/20 split, you keep 80% of the gross before fees.
Is commission taxed?
Yes. Most agents are independent contractors, so taxes aren't withheld. Set aside money for income and self-employment tax.
Related tools
Know your number before the appointment
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