How Real Estate Commission Splits Work

Compensation is negotiable, and listing-side and buyer-side compensation may be structured separately under the applicable agreements, such as a listing agreement or a written buyer agreement. There isn't always one total commission that is automatically divided between the two sides. Whatever your brokerage receives for your side is the amount your own split is based on.

Your agreement with your brokerage sets how your side's commission is shared. It's written as agent/brokerage:

• 70/30: you keep 70%, the brokerage keeps 30%.
• 80/20: you keep 80%, the brokerage keeps 20%.
• 90/10 or 100%: you keep 90% or all of it, sometimes with monthly or per-transaction fees.

These are examples only; your actual split depends on your brokerage agreement.

Example: on a $12,000 commission at 80/20, the brokerage keeps $2,400 and you keep $9,600.

Many brokerages cap how much split you pay in a year. Once your split payments reach the cap, you keep 100% of later commissions for the rest of the cap year (other fees may still apply).

Example: with a $16,000 cap on a 70/30 split and $3,000 per deal going to the brokerage, you cap after about 6 closings. See how close you are with the commission cap calculator.

If a referral fee is owed, it usually comes off the gross commission before the brokerage split. A 25% referral on $12,000 leaves $9,000, and your 80/20 split is then applied to $9,000. Try the referral fee calculator.

On a team, part of your commission may go to the team lead, often on top of the brokerage split. Teams calculate this differently, so check your agreement. In CommissionKeep, a team split is calculated on the commission after any referral fee, as a percentage or a flat amount.

$12,000 gross → 25% referral ($3,000) → 80/20 split on $9,000 ($1,800) → 10% team split on $9,000 ($900) → $6,300 before transaction fees and expenses.