Realtor Commission Calculator
Use this calculator to estimate the various commission amounts involved in a real estate transaction, including the total commission paid by the seller, the amounts received by each brokerage, and the take-home pay for both the listing and buyer agents after their splits.
Understanding Real Estate Commissions
Real estate commissions are the fees paid to real estate agents and their brokerages for their services in buying or selling a property. These commissions are typically a percentage of the property's final sale price and are most often paid by the seller at closing.
How Commissions Are Structured
A typical real estate transaction involves two main agents: the listing agent (who represents the seller) and the buyer agent (who represents the buyer). The total commission agreed upon by the seller and the listing brokerage is usually split between the listing brokerage and the buyer's brokerage.
- Total Commission: This is the overall percentage of the sale price that goes towards real estate fees. For example, if a property sells for $500,000 with a 5% total commission, $25,000 is allocated for commissions.
- Listing Brokerage Commission: This is the portion of the total commission that goes to the brokerage representing the seller.
- Buyer Brokerage Commission: This is the portion of the total commission that goes to the brokerage representing the buyer. Often, the total commission is split roughly equally between these two brokerages, but it can vary.
Agent Splits: What Agents Actually Take Home
Once the commission is paid to the respective brokerages, the individual agents don't receive the full amount. Instead, they have an "agent split" agreement with their brokerage. This split determines what percentage of the commission the agent keeps and what percentage the brokerage retains for overhead, marketing, and support.
- Listing Agent's Take-Home: The listing agent receives a percentage of the listing brokerage's commission, as per their agreement.
- Buyer Agent's Take-Home: Similarly, the buyer agent receives a percentage of the buyer brokerage's commission.
Agent splits can vary widely, from 50/50 for newer agents to 90/10 or even 100% (with a flat fee) for highly experienced agents or those with their own teams.
Example Scenario:
Let's say a house sells for $400,000. The total commission is 6%, split 3% for the listing brokerage and 3% for the buyer brokerage.
- Total Commission: $400,000 * 6% = $24,000
- Listing Brokerage Commission: $400,000 * 3% = $12,000
- Buyer Brokerage Commission: $400,000 * 3% = $12,000
Now, consider the agent splits:
- If the listing agent has a 60% split, they take home: $12,000 * 60% = $7,200
- If the buyer agent has a 70% split, they take home: $12,000 * 70% = $8,400
This calculator helps you quickly estimate these figures based on your specific inputs, providing clarity on how commissions are distributed in a real estate transaction.
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function calculateCommission() {
var salePrice = parseFloat(document.getElementById('salePrice').value);
var listingAgentCommissionRate = parseFloat(document.getElementById('listingAgentCommissionRate').value);
var buyerAgentCommissionRate = parseFloat(document.getElementById('buyerAgentCommissionRate').value);
var listingAgentSplit = parseFloat(document.getElementById('listingAgentSplit').value);
var buyerAgentSplit = parseFloat(document.getElementById('buyerAgentSplit').value);
var resultDiv = document.getElementById('commissionResult');
resultDiv.innerHTML = "; // Clear previous results
// Input validation
if (isNaN(salePrice) || salePrice < 0) {
resultDiv.innerHTML = 'Please enter a valid Property Sale Price.';
return;
}
if (isNaN(listingAgentCommissionRate) || listingAgentCommissionRate 100) {
resultDiv.innerHTML = 'Please enter a valid Listing Agent Commission Rate (0-100%).';
return;
}
if (isNaN(buyerAgentCommissionRate) || buyerAgentCommissionRate 100) {
resultDiv.innerHTML = 'Please enter a valid Buyer Agent Commission Rate (0-100%).';
return;
}
if (isNaN(listingAgentSplit) || listingAgentSplit 100) {
resultDiv.innerHTML = 'Please enter a valid Listing Agent Split (0-100%).';
return;
}
if (isNaN(buyerAgentSplit) || buyerAgentSplit 100) {
resultDiv.innerHTML = 'Please enter a valid Buyer Agent Split (0-100%).';
return;
}
// Convert percentages to decimals
var listingRateDecimal = listingAgentCommissionRate / 100;
var buyerRateDecimal = buyerAgentCommissionRate / 100;
var listingSplitDecimal = listingAgentSplit / 100;
var buyerSplitDecimal = buyerAgentSplit / 100;
// Calculations
var totalCommissionRate = listingRateDecimal + buyerRateDecimal;
var totalCommission = salePrice * totalCommissionRate;
var listingBrokerageCommission = salePrice * listingRateDecimal;
var buyerBrokerageCommission = salePrice * buyerRateDecimal;
var listingAgentTakeHome = listingBrokerageCommission * listingSplitDecimal;
var buyerAgentTakeHome = buyerBrokerageCommission * buyerSplitDecimal;
// Format results
var formatter = new Intl.NumberFormat('en-US', {
style: 'currency',
currency: 'USD',
minimumFractionDigits: 2,
maximumFractionDigits: 2,
});
resultDiv.innerHTML =
'
Summary of Commission Estimates:' +
'Total Commission Rate:
' + (totalCommissionRate * 100).toFixed(2) + '%' +
'Total Commission Paid by Seller:
' + formatter.format(totalCommission) + '' +
'Listing Brokerage Commission:
' + formatter.format(listingBrokerageCommission) + '' +
'Buyer Brokerage Commission:
' + formatter.format(buyerBrokerageCommission) + '' +
'Listing Agent\'s Take-Home Pay (after split):
' + formatter.format(listingAgentTakeHome) + '' +
'Buyer Agent\'s Take-Home Pay (after split):
' + formatter.format(buyerAgentTakeHome) + '';
}