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Simple Calculators

Real Estate Commission Calculator

Calculate agent commissions, buyer/seller splits, and your net proceeds from selling a home

Sale Price & Commission

Industry average: 5–6%

Typical: 1–3% of sale price

Commission Split

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All real estate

Quick summary

When you sell a home, the total real estate commission (typically 5–6% of the sale price) is split between the buyer's agent and seller's agent. The commission comes out of your proceeds at closing. After commission and closing costs, your net proceeds are typically 92–95% of the sale price.

Reviewed by Simple Calculators TeamLast reviewed

How to use this calculator

  1. Enter the inputs requested by the calculator.
  2. Choose the units or options that match your situation and review the assumptions.
  3. Run or update the calculation to see the result.
  4. Review the result, breakdown, and formulas shown on the page.
  5. Check the inputs, units, dates, and limitations before saving or sharing the result.

Real Estate Commission Formulas

Total Commission

Commission=Sale Price×Commission Rate\text{Commission} = \text{Sale Price} \times \text{Commission Rate}
Sale Price
Final negotiated home sale price
Commission Rate
Total commission % (typically 5–6%)

Worked example

$400,000 home at 5.5% total commission

Given
Sale Price = $400,000
Rate = 5.5%
Calculation
400,000×0.055400{,}000 \times 0.055
Result
$22,000 total commission

Seller Net Proceeds

Net Proceeds=Sale Price−Total Commission−Closing Costs\text{Net Proceeds} = \text{Sale Price} - \text{Total Commission} - \text{Closing Costs}
Total Commission
Sale Price × Commission Rate
Closing Costs
Typically 1–3% of sale price (title, escrow, taxes, etc.)

Worked example

$400K sale, 5.5% commission, 2% closing costs

Given
Sale Price = $400,000
Commission = $22,000
Closing Costs = $8,000
Calculation
400,000−22,000−8,000400{,}000 - 22{,}000 - 8{,}000
Result
$370,000 seller net

Frequently asked questions

What is the typical real estate commission?

Traditionally, total commission was 5–6% of the sale price, split equally between buyer and seller agents (2.5–3% each). Following the 2024 NAR settlement, commissions are now more negotiable. Some sellers negotiate 4–5% total, particularly in hot markets or when using discount brokerages.

Who pays the real estate commission?

Traditionally the seller pays the total commission from the sale proceeds, and that money is split between both agents. After the 2024 NAR settlement, buyer agent compensation must be separately negotiated with the buyer — sellers may pay only the listing agent's commission, and buyers separately compensate their agent.

What are typical seller closing costs?

Beyond agent commissions, sellers typically pay: title insurance ($500–$2,000), escrow/attorney fees ($500–$2,000), transfer taxes (varies by state), prorated property taxes, HOA transfer fees if applicable, and any agreed-upon repairs or credits. Total closing costs typically run 1–3% of the sale price.

Can I negotiate real estate commissions?

Yes, commissions are negotiable. In slower markets, agents may accept lower rates. Discount brokerages (Redfin, Clever) offer listing services for 1–2%. However, lower listing agent commissions may reduce incentive to show your property if buyer agents expect higher splits. Always discuss compensation structure upfront.

What is a seller's net sheet?

A net sheet (or seller's estimated net) is a document showing your expected proceeds from the sale after all costs — commission, closing costs, outstanding mortgage balance, and any other fees. Always request one from your agent before listing to understand your actual take-home amount.

Key terms

Commission Split
How the total commission is divided between the buyer's agent and listing (seller's) agent
Listing Agent
The real estate agent representing the seller in the transaction
Buyer Agent
The real estate agent representing the buyer — historically paid by the seller from commission
Net Proceeds
The amount the seller receives after paying all commissions and closing costs
Escrow
A neutral third party that holds funds and manages the transfer of ownership at closing

Methodology, sources & limitations

This page shows the formula, assumptions, and limitations used for this estimate. Rates, thresholds, and other time-sensitive inputs can change, so verify them against the relevant official source before relying on a result.

For our review approach and the primary sources we consult, see the methodology and source policy. If you spot an outdated figure or formula, please contact us with a correction.