function calculateCommission() {
var salePrice = parseFloat(document.getElementById('salePrice').value);
var listingBrokerageRate = parseFloat(document.getElementById('listingBrokerageRate').value);
var buyerBrokerageRate = parseFloat(document.getElementById('buyerBrokerageRate').value);
var listingAgentSplit = parseFloat(document.getElementById('listingAgentSplit').value);
var buyerAgentSplit = parseFloat(document.getElementById('buyerAgentSplit').value);
var errorMessageDiv = document.getElementById('errorMessage');
var commissionResultDiv = document.getElementById('commissionResult');
errorMessageDiv.style.display = 'none';
commissionResultDiv.style.display = 'none';
if (isNaN(salePrice) || salePrice < 0 ||
isNaN(listingBrokerageRate) || listingBrokerageRate 100 ||
isNaN(buyerBrokerageRate) || buyerBrokerageRate 100 ||
isNaN(listingAgentSplit) || listingAgentSplit 100 ||
isNaN(buyerAgentSplit) || buyerAgentSplit 100) {
errorMessageDiv.textContent = 'Please enter valid positive numbers for all fields. Rates and splits must be between 0 and 100.';
errorMessageDiv.style.display = 'block';
return;
}
var listingBrokerageCommission = salePrice * (listingBrokerageRate / 100);
var buyerBrokerageCommission = salePrice * (buyerBrokerageRate / 100);
var totalCommission = listingBrokerageCommission + buyerBrokerageCommission;
var listingAgentPersonalCommission = listingBrokerageCommission * (listingAgentSplit / 100);
var listingBrokerageRetained = listingBrokerageCommission – listingAgentPersonalCommission;
var buyerAgentPersonalCommission = buyerBrokerageCommission * (buyerAgentSplit / 100);
var buyerBrokerageRetained = buyerBrokerageCommission – buyerAgentPersonalCommission;
document.getElementById('totalCommission').textContent = '$' + totalCommission.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
document.getElementById('listingBrokerageCommission').textContent = '$' + listingBrokerageCommission.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
document.getElementById('listingAgentPersonalCommission').textContent = '$' + listingAgentPersonalCommission.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
document.getElementById('listingBrokerageRetained').textContent = '$' + listingBrokerageRetained.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
document.getElementById('buyerBrokerageCommission').textContent = '$' + buyerBrokerageCommission.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
document.getElementById('buyerAgentPersonalCommission').textContent = '$' + buyerAgentPersonalCommission.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
document.getElementById('buyerBrokerageRetained').textContent = '$' + buyerBrokerageRetained.toLocaleString('en-US', { minimumFractionDigits: 2, maximumFractionDigits: 2 });
commissionResultDiv.style.display = 'block';
}
Understanding Realtor Commission
Realtor commission is the fee paid to real estate agents for their services in buying or selling a property. It's typically a percentage of the property's final sale price and is usually paid by the seller at closing. However, the commission is then split between various parties involved in the transaction.
How Commission Works
When a property is sold, the total commission agreed upon (e.g., 5% or 6% of the sale price) is first divided between the listing brokerage (representing the seller) and the buyer's brokerage (representing the buyer). This split is often 50/50, but it can vary. For example, if the total commission is 6%, the listing brokerage might receive 3% and the buyer's brokerage might receive 3%.
After the brokerage receives its share, the individual real estate agent then splits their portion with their own brokerage. This agent-brokerage split can vary widely, from 50/50 for new agents to 90/10 or even 100% for top-producing agents, often with a desk fee or cap system in place. Our calculator helps you visualize these different layers of commission distribution.
Key Components of the Calculator:
Property Sale Price: The final price at which the property is sold. This is the base for all commission calculations.
Listing Agent's Brokerage Commission Rate (%): The percentage of the sale price that goes to the brokerage representing the seller.
Buyer's Agent's Brokerage Commission Rate (%): The percentage of the sale price that goes to the brokerage representing the buyer.
Listing Agent's Split with Brokerage (%): The percentage of the listing brokerage's commission that the individual listing agent personally receives.
Buyer's Agent's Split with Brokerage (%): The percentage of the buyer's brokerage's commission that the individual buyer's agent personally receives.
Example Scenario:
Let's say a house sells for $500,000. The total commission is 6%, split evenly between the listing and buyer's brokerages (3% each). Both the listing agent and the buyer's agent have a 70/30 split with their respective brokerages (meaning the agent keeps 70% of their brokerage's share).