Question 1

How is real estate commission calculated?

Accepted Answer

Multiply the sale price by the total commission rate in the agreement, split that total between the listing side and the buyer side, then apply the agent's split with their brokerage and take off any flat fees. For example, 500,000 at 6% is 30,000; split 50/50 each side gets 15,000; an agent on a 70% split keeps 10,500, the brokerage 4,500, and after 500 in fees the agent nets 10,000.

Question 2

What is the typical real estate commission rate?

Accepted Answer

There is no standard rate. Commission is negotiable, and what sellers, buyers and agents agree to depends on the property and the services included. Who pays which side, and how much, is negotiated in the listing and buyer agreements and varies by market. Enter the numbers from your own agreement; this calculator does not assume any standard rate, and the 6% in the form is only an example so the page shows a result.

Question 3

How does the brokerage split work?

Accepted Answer

Agents usually share the commission with their brokerage; the split is set in your agreement. On a 70/30 split, for example, the brokerage takes 30%, and some brokerages charge flat transaction, desk or franchise fees as well. Enter your own split and fees to see what you keep. If the fees are larger than your share, the net shows in red.

Question 4

What should I do with the number?

Accepted Answer

Sellers can see what a listing agreement means in dollars before signing. Agents can check a settlement statement, compare two brokerage splits, or see how a lower rate on one deal changes their net. The result is arithmetic on the numbers you enter, so the agreement and the closing documents are what count.

Question 5

Is my data saved or sent anywhere?

Accepted Answer

The calculation runs in your browser and ParrotNotes does not store your numbers. They sit in the page address so you can bookmark or share the result. You do not need an account, and clearing the fields removes them from the address.

Real Estate Commission Calculator

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