Real Estate Commission Calculator
Created by: Lucas Grant
Last updated:
Real estate commission is the sale price times the rate. On a $400,000 home, 2.5% to the listing agent is $10,000, and if the seller also pays 2.5% to the buyer’s agent, the total is $20,000 (5%). Since August 2024, the two sides are negotiated separately and the buyer’s agent may be paid by the seller or the buyer. Enter your numbers to see each side, what agents keep and your net proceeds.
Real Estate Commission Calculator
FinanceCommission for each side, who pays it, what agents keep and the seller’s net proceeds.
Real estate commission chart
Commission in dollars at common sale prices and rates. 2.5 to 3% is a typical single side; 5 to 6% is both sides combined.
| Sale price | 2.5% | 3% | 5% | 5.5% | 6% |
|---|---|---|---|---|---|
| $150,000 | $3,750 | $4,500 | $7,500 | $8,250 | $9,000 |
| $200,000 | $5,000 | $6,000 | $10,000 | $11,000 | $12,000 |
| $250,000 | $6,250 | $7,500 | $12,500 | $13,750 | $15,000 |
| $300,000 | $7,500 | $9,000 | $15,000 | $16,500 | $18,000 |
| $350,000 | $8,750 | $10,500 | $17,500 | $19,250 | $21,000 |
| $400,000 | $10,000 | $12,000 | $20,000 | $22,000 | $24,000 |
| $450,000 | $11,250 | $13,500 | $22,500 | $24,750 | $27,000 |
| $500,000 | $12,500 | $15,000 | $25,000 | $27,500 | $30,000 |
| $600,000 | $15,000 | $18,000 | $30,000 | $33,000 | $36,000 |
| $750,000 | $18,750 | $22,500 | $37,500 | $41,250 | $45,000 |
| $1,000,000 | $25,000 | $30,000 | $50,000 | $55,000 | $60,000 |
| $1,500,000 | $37,500 | $45,000 | $75,000 | $82,500 | $90,000 |
How real estate commission works
Commission = sale price × rate
Agent take-home = side commission × agent split
Net to seller = sale price − commissions the seller pays − other selling costs
Commission is paid at closing out of the sale proceeds, so the seller does not write a separate check. Net to seller here is before paying off any mortgage. Other selling costs often include transfer taxes, title fees, prorated property taxes and any repair credits; together they commonly add 1 to 3% of the price.
What changed in August 2024
- Offers of compensation to buyer’s agents can no longer appear on the MLS.
- Buyers working with an agent must sign a written agreement stating the agent’s pay before touring a home.
- Sellers may still agree to pay the buyer’s agent, often negotiated as part of the offer.
Frequently Asked Questions
How do you calculate real estate commission?
Multiply the sale price by the commission rate. On a $400,000 home, a 2.5% listing commission is $10,000 and a 2.5% buyer’s agent commission is another $10,000, for $20,000 total (5%). Each side’s brokerage then keeps part of its share.
What is the average real estate commission?
There is no standard rate; commissions are negotiable. Before 2024, totals of 5 to 6% split between the two agents were common. Since the National Association of Realtors settlement took effect on August 17, 2024, listing and buyer’s agent fees are agreed separately, and many listings now pay around 2.5 to 3% on each side.
Who pays the buyer’s agent now?
Buyers must sign a written agreement with their agent that sets the agent’s pay before touring homes. The seller can still offer to cover it, the buyer can ask for it in the offer, or the buyer pays it directly. Offers of buyer-agent pay can no longer be posted on the MLS.
How much does a real estate agent actually keep?
Less than the commission. Each side’s commission goes to the brokerage, which pays the agent a split, often 50 to 90% depending on experience and the brokerage model. A 3% side on a $400,000 sale is $12,000; at a 70% split the agent keeps $8,400 before their own expenses and taxes.
Is real estate commission tax deductible when selling a home?
Not as a separate deduction, but it lowers your taxable gain. Commissions are selling expenses that reduce the amount realized on the sale (IRS Publication 523). For most primary homes the $250,000 ($500,000 married) exclusion covers the gain anyway.
Can I negotiate the commission?
Yes. Rates are set by agreement, not law. Sellers can negotiate the listing fee, choose a flat-fee or discount brokerage, or decline to offer buyer-agent compensation. A lower fee can mean less marketing or service, so compare what is included.
Sources and References
- National Association of Realtors, The Facts. Settlement practice changes effective August 17, 2024.
- IRS Publication 523, Selling Your Home. Selling expenses, including commissions, reduce the amount realized.
- Consumer Financial Protection Bureau, Owning a Home. Closing costs and the Closing Disclosure.