Commission Calculator
Gross · Split · Net take-home
Your % after broker
e.g. RE/MAX, Keller Williams
E&O, desk fees, etc.
Federal + state est.
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Gross Commission
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After Split
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Deductions
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Net Take-Home
About This Calculator
The Real Estate Commission Calculator shows agents exactly what they pocket from each transaction after broker splits, franchise fees, and taxes. Most new agents are surprised by how much comes out before they see their check.
A typical commission structure: 6% total commission split between buyer's and listing agents → 3% to your broker → 70/30 split with your broker → franchise fee (5–8%) → deductions (E&O insurance, desk fees) → taxes (self-employment tax + income tax = ~30–35% for most agents).
Use this calculator with our GCI Goal Planner to understand how many deals you need to hit your income target.
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Frequently Asked Questions
What is the average real estate commission rate?▼
The traditional commission was 5–6% of the sale price, split between buyer's and listing agents (2.5–3% each). However, following the 2024 NAR settlement, commission structures are changing, with many buyers negotiating their agent's compensation directly.
How does a broker split work?▼
Your broker takes a percentage of your commission — typically 30–50% for newer agents, dropping as low as 10–20% for top producers. Some brokers charge a flat desk fee instead of a split. Always factor in your split when calculating take-home pay.
What is a franchise fee in real estate?▼
Franchise fees are charged by national brokerage brands (RE/MAX, Keller Williams, Century 21) — typically 5–8% of your commission. Independent brokerages don't charge this fee, which is why some agents prefer them despite lower brand recognition.
Do real estate agents pay self-employment tax?▼
Yes. As independent contractors, agents pay self-employment tax (15.3%) on net earnings plus income tax. Total tax burden is often 30–40%. Always set aside at least 30% of gross commission for taxes and consider quarterly estimated payments.
How can I increase my net commission?▼
Negotiate a better split as your volume grows, move to a cap-based brokerage (where you keep 100% after a capped annual contribution), reduce overhead, and ensure you're working with a tax professional to maximize legitimate deductions.
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