1. What is the KW Commission Calculator?

The KW (Keller Williams) Commission Calculator helps real estate agents estimate their earnings from a property sale based on the sale price, brokerage commission rate, and their individual split agreement.

2. How Does the Calculator Work?

The calculator uses the commission formula:

Where:

• \( \text{Sale Price} \) — Final sale price of the property in USD
• \( \text{KW Commission Rate} \) — Total commission percentage negotiated with the client
• \( \text{Split} \) — Agent's percentage share of the commission

Explanation: The calculation first determines the total commission, then applies the agent's split percentage to determine their personal earnings.

3. Understanding Real Estate Commissions in California

Details: In California, real estate commissions are typically 5-6% of the sale price, split between buyer's and seller's agents. KW agents then split this with their brokerage according to their individual agreements.

4. Using the Calculator

Tips: Enter the property sale price in USD, the total commission rate percentage (usually 2.5-3% for each side), and your personal split percentage with Keller Williams (typically 70-100% for experienced agents).

5. Frequently Asked Questions (FAQ)

Q1: Are commissions negotiable in California?
A: Yes, all real estate commissions are negotiable between the agent and their client.

Q2: What is a typical KW split structure?
A: KW typically offers a 70/30 split (agent/brokerage) that improves as agents meet production milestones.

Q3: Are there additional fees?
A: Some brokerages charge additional transaction fees or franchise fees that aren't included in this calculation.

Q4: How is commission taxed?
A: Commissions are considered self-employment income and subject to income tax and self-employment tax.

Q5: When is commission paid?
A: Typically at closing, after deducting any brokerage splits or fees.