π Real Estate Commission Calculator
Where every commission dollar actually goes.
Total commission paid
Estimates for planning only, not financial advice.
Sell for $450,000 at a 5.5 percent commission and $24,750 goes to commissions. Your listing agent's brokerage gets $12,375, and at a typical 70/30 agent-broker split your agent personally keeps $8,663. You net $425,250 before paying off the mortgage. The headline rate is just the start of the money trail.
How to Use This Calculator
Enter the sale price, the total commission rate you negotiated, the split between listing and buyer sides, and your agent's split with their broker. The calculator traces every dollar.
Enter the expected sale price and the commission rate from the listing agreement. Everything is negotiable.
Enter the listing/buyer split. Since the 2024 NAR settlement, buyer compensation is negotiated separately, not preset in the MLS.
Enter the agent's broker split to see what your agent actually takes home from your sale.
The Formula
Four hands touch the money: listing brokerage, buyer's brokerage, and each agent's split with their broker, plus possible transaction fees. The seller pays the listing side and, in practice, usually funds the buyer side too through the price. Understanding the chain is what lets you negotiate each link.
Worked Example
$450,000 sale, 5.5 percent total, 50/50 split, agent keeps 70 percent. Total: 450,000 x 0.055 = $24,750. Listing side: $12,375. Buyer side: $12,375. Your agent's personal cut: 12,375 x 0.70 = $8,662.50 (shown as $8,663) (their broker keeps $3,713). You net $425,250 before the mortgage payoff and other closing costs. If you negotiated 5 percent flat instead of 5.5, you would save $2,250, which is real money for a phone call.
Commissions After the 2024 NAR Settlement
The $418 million NAR settlement changed the game in August 2024: listing agents can no longer advertise buyer-agent compensation in the MLS, and buyers now sign written agreements with their agents before touring. Practical effects: buyer-agent fees are explicitly negotiated (often 2-2.5 percent paid by buyer or seller concession), total commissions have drifted down toward 4.5-5.5 percent from the old 6 percent norm, and flat-fee and discount brokerages gained share. Sellers should now negotiate three numbers separately: listing fee, buyer concession, and what happens if the buyer has their own agreement.
What the Alternatives Cost
| Model | Typical cost on $450k | Trade-off |
|---|---|---|
| Full-service agent (5.5%) | $24,750 | Full marketing, negotiation |
| Discount brokerage (4%) | $18,000 | Less hand-holding |
| Flat-fee MLS ($500 + buyer side) | ~$11,750 | You run the sale |
| FSBO (buyer agent only) | ~$11,250 | No listing representation |
| iBuyer / cash offer | 5-8% in fees + below-market price | Speed for money |
The right model depends on your market and skill. Hot markets with bidding wars need less agent labor; unique or slow-market homes need more. Studies consistently find agent-listed homes sell for more than FSBO, often enough to cover the commission, but the premium shrinks in seller's markets. Get the pricing right with our home offer calculator perspective, and check affordability with the mortgage payment calculator from the buyer's side.
Negotiating the Rate
Everything is negotiable, and saying so in the listing agreement is now effectively required. Negotiating points: high-price homes (the percentage yields big dollars), easy sales (hot neighborhood, turnkey condition), dual agency (one agent both sides, often discounted), and competing quotes from two or three agents. Never negotiate purely on rate: a 5 percent agent who sells 5 percent above asking beats a 4 percent agent who leaves money on the table. Judge on net proceeds, which is price minus commission, not on the commission alone.
FSBO: the Real Math
Selling it yourself skips the listing side, typically 2.5 to 3 percent, but the buyer side (usually 2 to 2.5 percent) often stays: most buyers arrive with agents, and refusing their compensation shrinks your buyer pool. On a $450,000 sale, true FSBO savings are closer to $11,000-$13,500 than the full $24,750 headline. Against that, price the costs: your time (40-60 hours for a typical sale), photography and staging, MLS flat-fee listing ($300-$500), legal review, and the pricing risk.
The pricing risk is the swing factor. Studies consistently find agent-listed homes sell for 5 to 15 percent more than FSBO homes, partly selection (harder homes go FSBO) and partly skill (pricing, negotiation, staging). If an agent nets you even 3 percent more on price, the commission pays for itself. FSBO works best for cookie-cutter homes in hot neighborhoods where pricing is obvious and buyers line up; unique, rural, or slow-market homes are where agents earn their fee.
Commissions Are Negotiable: Act Like It
Since the 2024 NAR settlement, every commission is negotiated upfront and stated explicitly: no more assumed splits, no more seller-offered buyer-agent pay as default. Interview multiple agents, compare their marketing plans against their fees, and consider flat-fee or discount brokerages for straightforward transactions. A 1 percent saving on a $500,000 home is $5,000: negotiate for an hour, keep thousands. The calculator shows the stakes; the settlement gave you the opening.
Estimates for planning only, not financial advice.
Frequently Asked Questions
How much is real estate commission on $450,000?
At 5.5 percent: $24,750 total. At the old 6 percent norm: $27,000. The seller typically pays this from proceeds at closing, split between listing and buyer sides per the negotiated agreement. On a $450,000 sale that is more than most buyers' entire down payment assistance programs, which is why the rate deserves negotiation.
What is the average realtor commission in 2026?
Roughly 4.5 to 5.5 percent total, down from the longstanding 6 percent norm after the 2024 NAR settlement increased competition and transparency. Rates vary by market, price point, and service level. Luxury homes often negotiate lower percentages since the dollar amounts are large; starter homes have less room.
Who pays the buyer's agent commission now?
It is negotiated deal by deal since the August 2024 NAR settlement ended the practice of advertising buyer compensation in the MLS. Buyers sign agreements with their agents; sellers often still offer concessions covering it, but nothing is automatic anymore.
How does the agent/broker split work?
The agent's brokerage takes a cut of the agent's side: common splits are 70/30, 80/20, or 90/10 in the agent's favor, sometimes with monthly desk fees. On a $12,375 listing side at 70/30, the agent keeps $8,663 and the broker $3,713.
Can I negotiate the commission rate?
Yes, always. Commission rates have never been fixed by law, and post-settlement transparency makes negotiation easier. Get multiple quotes, negotiate listing and buyer sides separately, and compare on projected net proceeds, not just the rate. A 5 percent agent who sells 5 percent above asking beats a 4 percent agent who leaves money on the table.
Is it worth using a discount brokerage?
Often, in straightforward sales: saving 1.5 points on $450,000 is $6,750. But agent skill affects sale price, and a strong negotiator can earn their fee in the final number. Interview on track record and marketing plan, then decide if the discount is worth the thinner service.
What is dual agency?
One agent representing both buyer and seller. It can reduce total commission since one brokerage takes both sides, but the agent cannot fully advocate for either party. Many states require written consent; some buyers and sellers avoid it on principle.
Do I pay commission if the house does not sell?
Generally no: listing agreements pay commission only on a completed sale. You may still owe marketing costs or a cancellation fee depending on the agreement's terms, so read the termination clause before signing. Most agreements let you cancel with written notice, but the protection period clause may owe the agent commission if the home sells to a buyer they introduced shortly after.
Are commissions tax deductible for sellers?
Not as a deduction, but they reduce your capital gain: commission is added to your cost basis (selling expenses), lowering taxable profit. Keep the settlement statement; your tax preparer needs the exact figure. On a $200,000 gain, a $24,750 commission saves roughly $3,700 to $5,900 in capital gains tax depending on your bracket.
What other closing costs do sellers pay?
Beyond commission: title insurance (owner's policy), transfer taxes, prorated property taxes, HOA transfer fees, and attorney fees in some states, typically 1-3 percent more. Commission is the biggest line, but not the only one. Request the estimated settlement statement early: surprise fees at the closing table are negotiable only before you sit down.