Calculate real estate agent commissions with split percentages, net proceeds to seller, and closing cost estimates.
This calculator estimates what a home seller keeps after the agent commission comes out of the sale proceeds. Enter the sale price, the total commission rate, how that commission splits between the listing side and the buyer's side, and an estimated closing cost percentage, and it returns the total commission, each side's share, and the seller's net proceeds. The thing sellers most often misjudge: the commission is deducted from the sale price before anything else, so the net figure can be far smaller than the headline price suggests.
A concrete input and expected output from the current implementation.
Input
Sale price: $400,000 | Commission rate: 6% | Split: 50/50 | Closing costs: 2% of price
Expected output
Total commission: $24,000, with $12,000 to the listing side and $12,000 to the buyer's side. Closing costs: $8,000. Net proceeds to seller: $368,000.
Six percent of $400,000 is $24,000, and the 50/50 split divides that total in half; the split never changes the seller's total. Deducting $24,000 in commission plus $8,000 in closing costs (2% of the price) leaves $368,000.
The total commission is the sale price multiplied by the combined rate covering both agents, and 5% to 6% is common in many markets. The split percentage then divides that total between the listing side and the buyer's side, typically 50/50. Each agent's own take is smaller still, because agents usually share their side of the commission with their brokerage.
Net proceeds are the sale price minus everything deducted at closing: the full commission plus the estimated closing costs, which are entered as a percentage of the sale price and stand in for title, escrow, transfer tax, and similar items. The remainder is the seller's cash at closing, the figure that actually funds the next move rather than the headline sale price.
In a typical US home sale the seller pays the commission out of the sale proceeds, and the listing and buyer's agents divide it. After the 2024 rule changes, the buyer's agent's fee is negotiated separately and is not advertised through the listing service, and in many transactions the buyer now pays their agent directly. Who pays is a matter of contract, not law, so read the listing agreement.
No. Real estate commissions have no regulated or legally required rate. Five to six percent of the sale price is a common convention in many markets, but the rate is fully negotiable between the seller and the listing broker, and discount or flat-fee brokerages charge less. The calculator's output follows whatever rate you enter, so check what is competitive in your area before treating a number as normal.
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