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Real Estate Commission Calculator

Calculate real estate agent commissions, see how the listing and buyer agent split works, and find out your net proceeds from a home sale.

$

The expected or actual sale price of the property

%

Typical: 5\u20136%

%

Percentage of total commission going to buyer\u2019s agent

Enter the sale price and commission details, then click Calculate to see the breakdown.

How Real Estate Commissions Work

How Real Estate Commissions Work

When a home is sold, the seller typically pays a commission to the real estate agents involved in the transaction. This commission is a percentage of the final sale price and is deducted from the seller’s proceeds at closing.

The Commission Split

The total commission is divided between two sides: the listing agent (representing the seller) and the buyer’s agent (representing the buyer). A 50/50 split is most common, but other arrangements exist. Each agent then shares their portion with their brokerage firm.

For example, on a $500,000 sale with a 6% commission:

  • Total commission: $30,000
  • Listing agent side (50%): $15,000
  • Buyer agent side (50%): $15,000
  • Seller’s net proceeds: $470,000

Are Commissions Changing?

Yes. Following the 2024 National Association of Realtors settlement, the traditional commission model is evolving. Key changes include buyers potentially paying their own agent’s fees and greater transparency in commission negotiations. Many sellers are now negotiating lower rates or exploring flat-fee and discount brokerage options.

Tips for Sellers

  • Get commission quotes from multiple agents before listing
  • Negotiate — commissions are never fixed by law
  • Consider the agent’s marketing plan and track record, not just the rate
  • Factor in that a lower commission may still result in higher net proceeds if the home sells for a higher price with a skilled agent
  • Understand what services are included at each rate tier

Frequently asked questions

The traditional real estate commission rate in the US is 5–6% of the home’s sale price, split between the listing agent and the buyer’s agent. However, following the 2024 NAR settlement, commission structures are evolving. Some agents now charge flat fees or lower percentages. The rate is always negotiable.

Historically, the seller pays the full commission out of the sale proceeds, which is then split between the listing and buyer’s agents. After recent industry changes, buyers may increasingly negotiate and pay their own agent’s commission separately. The commission is deducted at closing.

Yes, real estate commissions are always negotiable. You can negotiate a lower rate, a flat fee, or a tiered structure. Sellers with high-value homes, repeat clients, or those willing to do some marketing themselves often have more leverage. Some discount brokerages offer rates of 1–2% for listing services.

The total commission is typically split 50/50 between the listing agent and the buyer’s agent, though splits of 60/40 or other ratios are possible depending on the agreement. Each agent then splits their portion with their brokerage, usually keeping 60–80% depending on experience and production volume.

On a $400,000 home with a 6% total commission, the total is $24,000. If split 50/50, each agent’s side gets $12,000. After the agent’s brokerage takes their cut (typically 20–40%), the individual agent might take home $7,200–$9,600. High-producing agents often negotiate better splits with their brokerage.

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