Real estate commission calculator
Estimate commission amount and net after commission from a home sale price.
What this calculator covers
Use this calculator to estimate commission from a home sale price and commission rate.
The walkthrough keeps the commission amount and the amount left after commission in the same view for quick seller-side math.
Frequently asked questions
- How is real estate commission calculated?
- Commission is typically expressed as a percentage of the sale price. Multiply the sale price by the commission rate to get the dollar amount. For example, a 5% rate on a $400,000 sale produces a $20,000 commission.
- Is the commission rate negotiable?
- Commission rates are set by agreement between the seller and their agent and are not fixed by law. Rates vary by market, transaction type, and the services included. It is worth discussing the rate and any co-broke split with your agent before signing a listing agreement.
- What does "net after commission" mean?
- It is the sale price minus the estimated commission. This figure is still before mortgage payoff, transfer taxes, title fees, seller-paid credits, and other closing costs. Use it as a starting point for seller-proceeds math, not as a final net sheet.
- Does commission come out of the seller's proceeds?
- In most residential transactions the seller pays the commission from the sale proceeds at closing. The amount is deducted before the seller receives any remaining equity, so it directly reduces the seller's net proceeds.
Tool
Run the calculation
Result
RESULT · COMMISSION
â„–050
Primary result
$27,500.00
5% on a $550,000.00 sale price equals about $27,500.00 in commission, leaving $522,500.00 before other seller costs or payoff.
- Sale price
- $550,000.00
- Commission rate
- 5%
- Commission amount
- $27,500.00
- Net after commission
- $522,500.00
Step-by-step solution
- 1.Multiply the sale price by the commission rate to estimate $27,500.00 in commission.
- 2.Subtract the commission amount from the sale price to estimate $522,500.00 remaining before other costs.
- 3.Use the remaining amount as a partial seller-proceeds view rather than a final closing statement.
Walkthrough
Visual walkthrough
Commission math isolates one of the largest seller-side cost buckets before other closing items are layered in.
01
Set the sale price
The sale price is the base amount used to estimate commission.
$550,000.00 sale price
02
Apply the commission rate
$550,000.00 × 5% = $27,500.00
The percentage commission becomes a dollar cost once applied to the sale price.
$27,500.00 commission
03
Read the remaining gross amount
This figure is still before mortgage payoff, taxes, title charges, or repair credits.
$522,500.00 after commission