Real Estate Commission Calculator

How it is calculated

The commission is one percentage of the sale price: commission = price × rate ÷ 100, and the seller's figure before other costs is net = price − commission. The rate is entered as a percent, so 5 means 5%. Both inputs must be zero or more, and results are rounded to cents. This is the total commission for the sale. If the agreement splits it between a listing agent and a buyer's agent, the split changes who receives it, not the total. Rates are negotiated and differ by country, region and property type, and some agreements add fixed fees or tax on the commission, which this tool does not include. Net here is not the cash you receive at closing.

Common mistakes

• Typing the rate as a decimal (0.05) instead of a percent (5); the commission would come out 100 times too small.
• Treating the net figure as what the seller receives. Mortgage payoff, transfer taxes, legal fees and repairs still come out of it.
• Entering each agent's half of a split commission as the full rate, or adding both halves twice. Enter the combined rate once to get the total commission.
• Applying the rate to the asking price instead of the final sale price. Commission is usually calculated on the price the property actually sells for.
• Ignoring tax on the fee, or flat fees written into the contract. If the agreement has them, add them to the commission separately.