This Real Estate Commission Calculator helps you quickly calculate each broker’s commission from a property sale. Simply enter the sale price, the total commission rate, and the percentage split for each broker to see their respective commission amounts
1. What is a Commission? A commission is a fee paid to real estate agents for helping buy or sell a property.
2. Percentage of Sale Price: The commission is usually a percentage of the home’s sale price, like 5-6%. For example, for a $100,000 home, a 5% commission would be $5,000.
3. Who Pays the Commission? The seller typically pays the commission when the house is sold.
4. Splitting the Commission: If both a seller’s agent and a buyer’s agent are involved, they usually split the commission. Each might get half, so if the total commission is 6%, each agent might get 3%.
5. Negotiable Rates: The commission rate isn’t fixed; it can be negotiated between the seller and the agent.
6. Payment Timing: The commission is paid only after the sale is completed, which means when all the paperwork is finalized and the house is sold.
Suppose a property sells for $600,000 and the total commission rate is 6%. The listing broker has agreed to a 27/73 split with Broker A and Broker B.
Total Commission = 6% * $600,000 = $36,000
Broker A’s commission = 6% * 27% * $600,000 = $9,720
Broker B’s commission = 6% * 73% * $600,000 = $26,280
By following these steps, you can accurately calculate commissions when multiple brokers are involved in a real estate transaction, each with their own agreed-upon split of the total commission.
| Property Price | 4.50% | 5.00% | 6.00% |
|---|---|---|---|
| $10,000,000 | $450,000 | $500,000 | $600,000 |
| $2,000,000 | $90,000 | $100,000 | $120,000 |
| $300,000 | $13,500 | $15,000 | $18,000 |
| $20,000,000 | $900,000 | $1,000,000 | $1,200,000 |
| $500,000 | $22,500 | $25,000 | $30,000 |
A real estate license allows you to help people buy, sell, or rent homes. To get one, you need to take classes and pass a test.
You don’t need a license to buy property yourself, but if you want to earn commissions by helping others buy or sell property, you do need a license. It’s required to legally represent buyers and sellers and handle real estate transactions.
Average Real Estate Commission Rates by State
| State | Avg Commission (%) |
|---|---|
| Alabama | 5.54% |
| Alaska | 5.01% |
| Arizona | 5.66% |
| Arkansas | 5.70% |
| California | 5.16% |
| Colorado | 5.56% |
| Connecticut | 5.36% |
| DC | 5.28% |
| Delaware | 5.20% |
| Florida | 5.51% |
| Georgia | 5.86% |
| Hawaii | 5.41% |
| Idaho | 5.67% |
| Illinois | 5.27% |
| Indiana | 6.06% |
| Iowa | 6.13% |
| Kansas | 5.82% |
| Kentucky | 5.71% |
| Louisiana | 5.22% |
| Maine | 6.02% |
| Maryland | 5.48% |
| Massachusetts | 5.27% |
| Michigan | 5.95% |
| Minnesota | 5.55% |
| Mississippi | 5.60% |
| Missouri | 5.77% |
| Montana | 5.65% |
| Nebraska | 5.73% |
| Nevada | 5.10% |
| New Hampshire | 5.17% |
| New Jersey | 5.15% |
| New Mexico | 5.81% |
| New York | 4.68% |
| North Carolina | 5.54% |
| North Dakota | 5.98% |
| Ohio | 5.79% |
| Oklahoma | 5.65% |
| Oregon | 5.41% |
| Pennsylvania | 5.42% |
| Rhode Island | 4.88% |
| South Carolina | 5.92% |
| South Dakota | 5.98% |
| Tennessee | 5.78% |
| Texas | 5.98% |
| Utah | 5.41% |
| Vermont | 5.98% |
| Virginia | 5.56% |
| Washington | 5.65% |
| West Virginia | 5.42% |
| Wisconsin | 5.88% |
| Wyoming | 5.48% |
In summary, a Real Estate Commission Calculator makes it easy to figure out how much each broker earns from a property sale. Whether you’re an agent, buyer, or seller, this tool helps you quickly see the commission amounts based on the sale price, commission rate, and broker splits, making the process clear and straightforward for everyone involved.
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