Free Tool — Real Estate
Real Estate Commission Calculator
Calculate total commission, listing-side gross, agent net, and broker net for any home sale. Common math on the real estate license exam.
Real Estate Commission Calculator
Listing side % of total commission
Agent's % of the listing side
Formula Reference
Total Commission = Sale Price × Commission Rate
Listing Side = Total × Listing Split %
Agent Net = Listing Side × Agent Split %
Pro Insights
- Net proceeds after typical closing costs:See in app
- State transfer tax for this sale price:See in app
- Prorated property tax at closing:See in app
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How Commission Works
In a standard transaction, the seller pays a total commission (typically 5–6%) that is split between the listing brokerage and the buyer's brokerage (co-op commission). Each brokerage then splits its portion with the agent based on their individual agent/broker agreement.
The real estate license exam tests this math extensively. Common question formats: "A home sells for $380,000 with a 6% total commission split 50/50. The listing agent receives 60% of the listing side. How much does the listing agent earn?" Work it step-by-step: $380,000 × 0.06 = $22,800 total → ÷ 2 = $11,400 listing side → × 0.60 = $6,840 agent net.
Net listing arrangements (where the agent keeps everything above a seller's minimum) are illegal in most states — know this for the exam.
Frequently Asked Questions
Who pays real estate commission — the buyer or the seller?
Traditionally, the seller pays the total commission at closing from the sale proceeds. However, post-NAR settlement (2024), buyer-agent compensation is negotiated separately and buyers may now be directly responsible for their agent's fee. The real estate license exam tests the traditional model — commission paid by seller at closing.
What is a typical real estate commission percentage?
Historically 5–6% total, split between the listing and buyer's brokerages (often 50/50 or 60/40). Each brokerage then splits its portion with the individual agent per their agreement. For exam purposes, use the percentage given in the question — don't assume a default.
What is a net listing and why is it illegal?
A net listing lets the agent keep everything above a seller's minimum price as commission. It creates a conflict of interest (the agent profits more by getting the lowest price the seller accepts) and is illegal in most states. It appears frequently on license exams as an example of prohibited conduct.
How do I calculate listing agent net from total commission?
Multiply sale price by commission rate to get total commission. Multiply by listing side split (often 50%) to get listing brokerage gross. Multiply by agent split percentage (e.g., 60%) to get listing agent net. Example: $400,000 × 6% = $24,000 → × 50% = $12,000 → × 60% = $7,200 agent net.