Real Estate Commission Calculator

How commission splits work

Your gross commission is what your side of the deal earns: a percentage of the sale price or a flat fee, set in your listing agreement or written buyer agreement. The check goes to your brokerage, not to you, and a few people get paid before you do.

• Referral fee. If another agent sent you the client, their brokerage gets whatever share of your gross the referral agreement says (for example, 25%). This calculator takes it off the top.
• Franchise or royalty fee. Franchise brokerages pay the brand a percentage of gross commission. Depending on your agreement, it comes off the top before the split (you and the brokerage share the cost) or out of your share after the split (you carry all of it).
• Brokerage split. What's left is divided between you and your brokerage. On a 70/30 split, you keep 70%.
• Cap. Some brokerages stop taking their share once you've paid them a set amount in your cap year. If the brokerage's share of this deal is more than what's left on your cap, it takes only the remainder.
• Team split and fees. On a team, the lead may keep a percentage of what reaches you. Flat per-transaction fees (transaction, E&O, admin) come out of your share; the calculator subtracts them last.

Worked example

A $400,000 sale at 2.5% for your side, a 25% referral fee, a 5% franchise fee taken before the split, a 70/30 split with no cap, no team, and $400 in transaction fees:

That's 1.125% of the sale price, and it would take 23 deals like this to reach $100,000. If you had only $1,500 left on your cap, the brokerage's share would stop at $1,500 and your take-home would rise to $5,100.

Buyer-side pay after the 2024 NAR settlement

Under the practice changes that took effect in August 2024:

• Offers of compensation to buyer's agents can't be made through the MLS.
• Agents working with a buyer need a written buyer agreement before touring a home. It has to spell out your compensation as a clear amount or rate, and you can't collect more than that from any source.
• Sellers can still agree to pay the buyer's agent, either directly or as a concession to the buyer. That's negotiated off the MLS.

For this calculator, enter the buyer-side commission you expect to be paid under your buyer agreement, whoever pays it. The split math after that doesn't change. Local rules and MLS policies vary, so check the details with your broker.

FAQ

Is the referral fee taken before my split?

It's typically paid broker-to-broker out of the gross commission before anything is split, and that's how this calculator treats it. Your independent contractor agreement is the final word.

What if I hit my cap on this deal?

Enter what's left on your cap, not the full annual amount. The brokerage takes only that remainder, and you keep the rest of what would have been its share. Check whether your plan still charges per-transaction fees after you cap. If it does, keep them in the fees field.

How much should I set aside for taxes?

That's a question for your CPA. The set-aside field is just a bucket so you don't spend money you'll owe. If you're paid as an independent contractor, nothing is usually withheld from your commission check, and you're responsible for self-employment tax and income tax, often through quarterly estimated payments.

Does this include desk fees, MLS dues, or marketing?

No. It covers one deal. Monthly desk fees, association and MLS dues, and ongoing marketing are overhead. If you pay something on every deal, like a photographer or transaction coordinator, add it to per-transaction fees.