1. What is the Agent Commission Calculator?

The Agent Commission Calculator helps real estate professionals and clients estimate commission earnings based on sale price, total commission rate, and the agent's split percentage with their brokerage.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Sale Price — The final selling price of the property
• Total Commission Rate — The percentage of sale price paid as commission (typically 5-6%)
• Split Percentage — The agent's share of the commission (typically 50-70% for newer agents)

Explanation: First calculates total commission, then determines agent's portion based on their split agreement with their brokerage.

3. Understanding Real Estate Commissions

Details: Commissions are typically negotiated between the seller and listing agent, then split between listing and buyer's brokerages, with each agent then receiving their portion based on their individual split agreements.

4. Using the Calculator

Tips: Enter the property sale price, total commission rate (usually 5-6% for residential), and your personal split percentage with your brokerage (often 50-70% for newer agents).

5. Frequently Asked Questions (FAQ)

Q1: What's a typical commission rate?
A: Residential rates are usually 5-6% of sale price, commercial often 4-8%. Rates are negotiable.

Q2: How is the commission split between agents?
A: Typically 50/50 between listing and buyer's brokerages, but can vary. Each agent then splits with their brokerage.

Q3: What's a standard agent-brokerage split?
A: New agents often get 50-70%, experienced agents may get 80-100%. Some brokerages use tiered splits.

Q4: Are commissions taxable income?
A: Yes, commissions are taxable as self-employment income. Agents should set aside 25-30% for taxes.

Q5: Do buyers pay commission?
A: Typically no - seller pays both agents' commissions from sale proceeds, though this can vary by market.