Real Estate Commission Calculator
See what selling really costs in agent fees. Enter the expected sale price in dollars and each side's commission rate as a percent — you get the total commission, the listing and buyer-side split, and what's left before other closing costs.
Example: with Expected sale price ($) 400000 · Listing agent rate (%) 2.75 · Buyer agent rate (%) 2.75 → Total commission: $22,000 (5.5% of sale price).
- Split by sideListing side $11,000 · buyer side $11,000
- Left after commission$378,000 before other closing costs
Computed by the calculator below using its default values. Change any input to see your own numbers.
Commission = sale price × rate. Rates are fully negotiable — since the 2024 NAR settlement, buyer-agent pay is negotiated separately rather than set by the listing.
How the commission comes out of the sale
Real estate commission is a percentage of the final sale price, historically paid out of the seller's proceeds at closing. It is quoted per side: the listing agent's rate and the buyer agent's rate, which together form the total. On a $400,000 sale at 2.75% per side, each side earns $11,000 and the seller's proceeds drop by $22,000.
Each side's check is then typically shared between the agent and their brokerage under their own split agreement — that part doesn't change what you pay, only where it goes.
What changed after the NAR settlement
Since the 2024 National Association of Realtors settlement, listing brokers no longer advertise a buyer-agent commission through the MLS, and buyers sign agreements with their own agents spelling out compensation. In practice sellers can still offer to cover the buyer side as a concession to widen the buyer pool — but it is now an explicit negotiation, not a default.
Every rate on this page is negotiable. Combined commissions have commonly run in the 5 to 6 percent range historically, but flat-fee brokers, discount models, and high-priced markets routinely land well below that.
How it’s calculated
Total commission = sale price × (listing rate + buyer rate) ÷ 100. Each side = sale price × its own rate ÷ 100. The remainder shown = sale price − total commission; it does not subtract loan payoff, transfer taxes, title, escrow, or repairs. Commission is calculated on the full sale price, and results are pre-tax estimates.
Assumes both sides are paid from seller proceeds at the stated rates; your listing agreement and any negotiated buyer concessions control the real split.
Total commission at common rates
| Sale price | 5% total | 5.5% total | 6% total |
|---|---|---|---|
| $250,000 | $12,500 | $13,750 | $15,000 |
| $400,000 | $20,000 | $22,000 | $24,000 |
| $600,000 | $30,000 | $33,000 | $36,000 |
| $800,000 | $40,000 | $44,000 | $48,000 |
Computed with commission = sale price × rate; rates are negotiable conventions, not fixed fees.
Common mistakes
- Applying the rate to your equity or expected profit — commission is charged on the full sale price.
- Treating commission as the whole cost of selling: title, escrow, transfer taxes, and concessions typically add more on top.
- Assuming you must offer a buyer-agent commission — after the 2024 settlement it's a negotiation, though offering nothing can shrink your buyer pool.
- Double-counting the agent-broker split: it comes out of each side's share, not on top of it.
Frequently asked questions
How is real estate commission calculated?
Commission = sale price × rate ÷ 100 for each side, then the sides are added. A $400,000 sale at 2.75% listing plus 2.75% buyer side costs $22,000 total.
Who pays the commission?
Traditionally the seller paid both sides out of the sale proceeds at closing. Since the 2024 NAR settlement, buyer-agent compensation is negotiated separately — buyers may pay their own agent, or sellers may cover it as a concession.
What is a typical commission rate?
Combined rates have historically clustered around 5 to 6 percent, split roughly evenly between the two sides, but every rate is negotiable and discount and flat-fee models are common. Higher-priced homes often negotiate lower percentages.
Is the commission based on the sale price or my profit?
The sale price. Even if you owe more on the mortgage than the home nets you, the commission is still computed on the full price the buyer pays — a key reason thin-equity sales can leave sellers writing checks at closing.
Is commission tax deductible?
For a home sale, commission is treated as a selling expense that reduces your amount realized, which can shrink any taxable capital gain. It's not a separate deduction — confirm the details with a tax professional.