1. What is a Real Estate Commission Split?

In California real estate transactions, the commission is typically split between the listing agent, buyer's agent, and their respective brokers. This calculator helps agents determine their personal take-home amount from a sale.

2. How Commission Splits Work in California

The standard calculation involves three steps:

Where:

• Sale Price — Final selling price of the property
• Commission Rate — Typically 5-6% in California (negotiable)
• Split Percentage — Agent's share after broker split (often 50-70% for newer agents)

3. Typical Commission Structures

Common Splits:

• 50/50 between listing and buyer's side (then each agent splits with their broker)
• 60/40 or 70/30 splits between agent and broker (varies by experience)
• Graduated splits (percentage increases after certain sales thresholds)

4. Using This Calculator

Instructions: Enter the home sale price, total commission rate (usually 5-6%), and your personal split percentage with your broker. The calculator will show both the total commission and your personal share.

5. Frequently Asked Questions (FAQ)

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

Q2: What's the average agent split in California?
A: Newer agents often get 50-70%, while experienced agents may get 80-100% (often with monthly fees).

Q3: Who pays the commission in a sale?
A: Typically the seller pays the full commission, which is then split between both sides.

Q4: Are commissions taxed differently?
A: Commissions are ordinary income and subject to self-employment taxes in California.

Q5: What other fees might reduce my take-home?
A: Brokerages may charge transaction fees, desk fees, or franchise fees on top of the split.