How to Calculate Realtor Commission

Gross commission = sale price × commission percentage.

Convert the percentage to a decimal first: 3% is 0.03, 2.8% is 0.028, 2.25% is 0.0225.

• $350,000 × 3% = $10,500
• $487,500 × 2.8% = $13,650
• $625,000 × 2.25% = $14,062.50
• $1,200,000 × 2.5% = $30,000

Use your exact sale price, not a rounded one. On $248,537 at 3%, the commission is $7,456.11. Rounding the price to $250,000 would overstate it by $43.89.

Commission rates are negotiated, and each side of a transaction may be paid differently. Calculate using the percentage your side is being paid, as it's written in your agreement or on the settlement statement.

Gross commission is the starting point, not your paycheck. In the usual order:

1. Referral fee, if another agent or relocation company sent you the client.
2. Brokerage split — the share your brokerage keeps, such as 20% on an 80/20 split.
3. Team split, if you're on a team.
4. Transaction or broker fees charged per closing.
5. Other deal-specific deductions taken out of this commission at closing.

Business expenses such as photography, marketing, staging or client gifts are separate: they may reduce your overall take-home income after the deal's net commission is calculated, rather than being deducted from the commission itself.

The full method is in how to calculate net commission after split and fees.

$400,000 sale at 3% = $12,000 gross. On an 80/20 split, the brokerage keeps $2,400. A $395 transaction fee leaves $9,205 — about 77% of gross, before taxes and business expenses.

Run your own numbers in the free real estate commission calculator.