How real estate commission is calculated and split
The arithmetic is short, and each step is a figure you can change above:
- Total commission is the sale price times the agreed rate: $400,000 × 5% = $20,000.
- Two sides. The total is divided between the listing side (the seller's agent) and the buyer side. An even split gives $10,000 each; the calculator lets you set any share.
- The agent's side. An agent working one side starts from that side's amount. An agent who represents both sides starts from the whole $20,000.
- Referral fee. If a referral is owed, it comes off the agent's gross first. A 25% referral on the $10,000 side is $2,500, leaving the agent $5,250.00 after a 70/30 split.
- The brokerage split. The agent keeps their percentage of what is left and the brokerage keeps the rest. At 70/30 on $10,000 that is $7,000 and $3,000; at 80/20 the agent keeps $8,000.
- Per-deal fees. A fixed transaction or desk fee comes out of the agent's share: a $495 fee turns $7,000 into $6,505.00.
The seller's side of the arithmetic is simpler: the price minus the commission is $380,000, before the mortgage payoff, closing costs, taxes and anything else, none of which this calculator knows about.
Is real estate commission negotiable?
Yes. The National Association of Realtors states that compensation is not set by law and is fully negotiable.1 Two practice changes took effect on August 17, 2024 under the association's settlement: offers of compensation to a buyer's broker can no longer be published on a multiple listing service (MLS), and an agent who works with a buyer through the MLS must have a written agreement with that buyer before touring a home, stating the compensation in terms that can be determined and are not open-ended.1 Offers of compensation can still be made off the MLS, through negotiation. In practice this puts the buyer side of the commission on the table, which is why the calculator treats the listing and buyer shares as inputs rather than assuming an even split.
This calculator does not say what rate is normal in your market, and neither should you take the 5% in the example as one: it is a round number chosen so the arithmetic is easy to check.
Commission by sale price
For a quick answer: a 5% commission on a $300,000 house is $15,000 ($18,000 at 6%). On a $1 million sale, 5% is $50,000 and 6% is $60,000. At 3%, a $500,000 sale is $15,000.
| Sale price | 2.5% | 3% | 4% | 5% | 5.5% | 6% |
|---|---|---|---|---|---|---|
| $200,000 | $5,000 | $6,000 | $8,000 | $10,000 | $11,000 | $12,000 |
| $300,000 | $7,500 | $9,000 | $12,000 | $15,000 | $16,500 | $18,000 |
| $400,000 | $10,000 | $12,000 | $16,000 | $20,000 | $22,000 | $24,000 |
| $500,000 | $12,500 | $15,000 | $20,000 | $25,000 | $27,500 | $30,000 |
| $750,000 | $18,750 | $22,500 | $30,000 | $37,500 | $41,250 | $45,000 |
| $1,000,000 | $25,000 | $30,000 | $40,000 | $50,000 | $55,000 | $60,000 |
What different agent/brokerage splits mean
A split says how much of the commission the agent keeps. Whether 70/30 is a good split cannot be read from the numbers alone: it depends on what the brokerage provides (leads, training, marketing, office costs) and what fees the agent also pays. What the numbers can show is the difference in dollars, before fees, between splits on the same commission:
| Agent / brokerage | Agent's side $10,000 | Agent's side $15,000 | Agent's side $25,000 |
|---|---|---|---|
| 50 / 50 | $5,000 / $5,000 | $7,500 / $7,500 | $12,500 / $12,500 |
| 60 / 40 | $6,000 / $4,000 | $9,000 / $6,000 | $15,000 / $10,000 |
| 70 / 30 | $7,000 / $3,000 | $10,500 / $4,500 | $17,500 / $7,500 |
| 80 / 20 | $8,000 / $2,000 | $12,000 / $3,000 | $20,000 / $5,000 |
| 90 / 10 | $9,000 / $1,000 | $13,500 / $1,500 | $22,500 / $2,500 |
To compare two offers, enter each brokerage's split and its per-deal fees above and compare the "Agent takes home" figure at the volume of business you expect.
Frequently asked questions
How do I calculate real estate commission?
Multiply the sale price by the commission rate. A 5% commission on a $400,000 sale is $20,000. That total is then divided between the listing side and the buyer side, and each agent's side is divided again between the agent and their brokerage.
How much is the commission on a $300,000 house?
At 5% it is $15,000, and at 6% it is $18,000. The commission rate is agreed, so use the figure in your agreement. The table above lists other prices and rates.
How much is a realtor's commission on $1 million?
At 5% the total commission is $50,000 and at 6% it is $60,000, before it is divided between the two sides and between each agent and their brokerage.
Is real estate commission negotiable?
Yes. The National Association of Realtors states that compensation is not set by law and is fully negotiable. Since August 17, 2024, offers of compensation to a buyer's broker can no longer be published on the MLS, and agents working with buyers through the MLS need a written agreement with the buyer before touring homes.
Who pays the real estate commission?
It is set by agreement. Since the 2024 practice changes, compensation for the buyer's broker is negotiated instead of being advertised as an offer on the MLS, and who ends up paying it, the seller, the buyer or both, depends on the agreements the parties sign. Read yours before you sign.
What does a 70/30 commission split mean?
The agent keeps 70% of the commission that reaches them and the brokerage keeps 30%. On a $10,000 side that is $7,000 for the agent and $3,000 for the brokerage. Whether that is a good deal depends on the fees and support that come with it.
What if an agent represents both the buyer and the seller?
Choose "Both sides" as the agent's side. The agent's gross is then the whole commission ($20,000 in the example), and the brokerage split applies to all of it.
How does a referral fee work?
A referral fee is a percentage of the agent's gross commission paid to whoever referred the client. It comes off before the brokerage split in this calculator. A 25% referral on a $10,000 side is $2,500.
How much does the seller net after commission?
The price minus the commission: $380,000 on the example. That is before the mortgage payoff, closing costs, taxes and any repairs or concessions, so it is not the amount the seller receives.
Is what I type sent anywhere?
No. The calculation runs in your browser and the numbers you enter are not sent to a server. We count page visits with our own analytics on our own server, and those events carry no amounts or inputs.
Sources
- National Association of Realtors, NAR Settlement FAQs (updated September 5, 2024; one answer updated October 17, 2025): compensation is not set by law and is fully negotiable; from August 17, 2024 offers of buyer-broker compensation cannot be published on an MLS and MLS participants need written agreements with buyers before touring, with compensation terms that are objectively ascertainable and not open-ended.
The calculations on this page are done by this page's own code. The rule text is the association's own description of its practice changes, not legal advice; check your state's rules and your own agreements.