Guide
How to Calculate Net Commission After Brokerage Split and Fees
Net commission is what's left from a closing after everyone else is paid. Work it out in this order.
The steps
- Gross commission = sale price × your commission %.
- Subtract the referral fee (a percentage of gross, or a flat amount).
- Add any fees paid to you that your brokerage splits, such as an admin fee shared with the brokerage. Whether an admin or transaction fee is subject to the brokerage split depends on your brokerage agreement; CommissionKeep follows the settings you enter.
- Subtract the brokerage split — the brokerage's % of the amount from step 3. If you've capped, subtract only what's left on your cap, or nothing.
- Subtract the team split, if any.
- Subtract flat fees: broker transaction fee, MLS fees, other deductions.
- Add any transaction fee you charged your client and kept in full.
Worked example
Sale price $487,325.67 at 2.8%, 12.75% referral, 82.5/17.5 split, 7.25% team split, $395.50 broker fee and $63.17 other deductions:
- Gross commission: $13,645.12
- Referral fee (12.75%): −$1,739.75 → $11,905.37
- Brokerage split (17.5% of $11,905.37): −$2,083.44
- Team split (7.25% of $11,905.37): −$863.14
- Broker transaction fee: −$395.50
- Other deductions: −$63.17
- Net commission: $8,500.12 — about 62% of gross
Check a deal of your own with the real estate commission calculator.
Net commission isn't take-home pay yet
From net commission, you still pay your business expenses and set money aside for taxes. The tax reserve calculator estimates a reserve at the percentage you choose.
Tax figures are estimates only and are not tax advice. Talk to a qualified tax professional about your own situation.
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