Real Estate Commission Calculator
See how agent commissions affect your sale proceeds — with separate listing and buyer agent rates.
$
$100K$2M
%
= $12,000
%
= $10,000
Total Commission
5.5%
Amount
$22,000
After Commission
$378,000
Commission
5.5%
Listing Agent
$12,000Buyer's Agent
$10,000Remaining
$378,000How Different Rates Affect Your Proceeds
Total commission at various rates on a $400,000 sale
| Rate | Commission | You Keep |
|---|---|---|
| 3% | $12,000 | $388,000 |
| 4% | $16,000 | $384,000 |
| 4.5% | $18,000 | $382,000 |
| 5% | $20,000 | $380,000 |
| 5.5% * | $22,000 | $378,000 |
| 6% | $24,000 | $376,000 |
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How Real Estate Commission Works
When you sell a home, real estate agent commissions are typically the largest transaction cost. The total commission is split between two agents — the one who listed your home and the one who brought the buyer.
- Listing agent — represents you, the seller. Handles pricing, marketing, showings, negotiations, and paperwork. Typically charges 2.5-3% of the sale price.
- Buyer's agent — represents the buyer. Helps them find homes, make offers, and navigate the closing process. Typically earns 2-3%, historically paid from the seller's proceeds.
- Brokerage split — each agent shares their commission with their brokerage (the company they work under), typically 50/50 to 70/30 depending on the agent's experience.
What Changed After the 2024 NAR Settlement
The National Association of Realtors (NAR) reached a landmark settlement in 2024 that changed how commissions work in the U.S.:
- Sellers are no longer required to offer compensation to the buyer's agent through the MLS.
- Buyers now sign written agreements with their agents specifying compensation before touring homes.
- Commission rates are more transparent and negotiable than ever.
The practical impact: total commissions are trending lower, and buyers have more say in what their agent earns. This calculator lets you model any combination of listing and buyer agent rates.
Tips to Save on Commission
- Negotiate the rate — don't assume the first number is final. Many agents will lower their rate to win your listing, especially on higher-priced homes.
- Consider flat-fee or discount brokers — some agents charge a flat fee ($3,000-$5,000) instead of a percentage. On expensive homes the savings can be enormous.
- Offer less to the buyer's agent — post-settlement, you can offer 2% or even 0% and let the buyer pay their own agent. This shifts cost but may affect buyer interest.
- Sell to someone you know — if you already have a buyer, you may not need agents at all. Just hire a real estate attorney for the paperwork.