Real Estate Commission Calculator
Estimate realtor commission and net proceeds from your home sale. Accounts for agent fees and closing costs to show what you'll actually walk away with.
What this calculator does
This commission calculator shows what a home sale actually leaves you. Enter the sale price, the commission rate you have agreed, and your other closing costs, and it returns the total commission, the other costs, and the net proceeds before any mortgage payoff.
The reason to run it is the gap between the two numbers sellers care about. A $475,000 sale price is not $475,000 in your pocket — commission alone is usually the largest single deduction, and the various closing costs, title fees, transfer taxes, and prorations add a percentage or two more. Seeing the breakdown line by line is what makes a listing price decision an informed one.
When to use it
Use it before you list, when the agent's proposed rate is still negotiable and a half point either way is a real number rather than an abstraction. It is also the right tool when comparing a full-service listing against a flat-fee or discount brokerage — convert both to net proceeds and the comparison becomes concrete.
It matters most when you are buying and selling simultaneously, since net proceeds minus your mortgage payoff is the down payment available for the next house. And it settles the question of whether an early offer is worth taking: a lower price with no buyer-agent concession can net more than a higher one with a three percent concession, which is only visible once you compute both.
Understanding the inputs
Sale price should be a realistic expected sale price rather than an aspirational list price — in most markets homes sell at or slightly below asking, so modeling the asking price overstates your proceeds.
Commission rate is the total percentage you are paying. Since the 2024 NAR settlement, that may be listing-side only at 2.5 to three percent, or it may include a buyer-agent concession bringing it to five or 5.5 percent. Model both. Other closing costs should cover title insurance, escrow or attorney fees, transfer and recording taxes, prorated property taxes and HOA dues, and any anticipated repair credits — one to three percent of price is a reasonable placeholder until you have quotes.
How is this calculated?
Commission = Sale Price × Rate. Net Proceeds = Sale Price − Commission − Closing Costs.
A worked example
Take a $475,000 sale with a 5.5 percent total commission and $9,000 of other closing costs. Commission comes to $26,125, so net proceeds before mortgage payoff are $439,875 — about 92.6 percent of the sale price.
Now list at the same price with a 2.5 percent listing-side agreement and no buyer-agent concession. Commission drops to $11,875 and net proceeds rise to $454,125, a difference of $14,250. That is the sum you have available to negotiate with. Offering a two percent buyer concession — $9,500 — to secure a faster sale still leaves you about $4,750 ahead of the traditional 5.5 percent structure, which is exactly the calculation the post-settlement market has made routine.
Limitations and assumptions
The net proceeds figure is before your mortgage payoff, which for most sellers is the largest deduction of all. Request a payoff quote from your servicer that includes interest to the expected closing date, since a balance from last month's statement will be a few hundred dollars short.
Closing cost customs vary sharply by state — who pays title insurance, whether an attorney is required, and transfer tax rates from zero to over two percent all differ. The calculator also excludes staging, pre-listing repairs, capital gains tax where the primary residence exclusion does not apply, and any concession negotiated after inspection, which routinely runs into thousands. Ask your agent or title company for a seller's net sheet once you have an offer in hand.
Common Questions
- What is a typical commission rate now?
- Historically five to six percent split between the listing and buyer's agents. Since the NAR settlement took effect in August 2024, offers of buyer-agent compensation can no longer be published on the MLS, and listing-side-only agreements of 2.5 to three percent have become far more common. Rates have always been negotiable and now visibly are.
- How did the NAR settlement change things?
- Two ways. Buyer-broker compensation cannot be advertised on the MLS, and buyers must sign a written representation agreement before touring homes. In practice sellers now negotiate their listing fee separately and decide case by case whether to offer a buyer-agent concession, which is often used as a negotiating tool rather than a fixed cost.
- Do I still have to pay the buyer's agent?
- Not automatically. You can list without offering buyer-agent compensation, though buyers whose agents are unpaid may factor that into their offers or ask for a concession at negotiation. Many sellers now budget two to 2.5 percent as a possible concession rather than committing to it upfront.
- Is commission negotiable?
- Yes, always, and it has never been set by any rule. Leverage depends on your property: a well-priced home in a fast market, a high sale price, or a seller who is also buying through the same agent all support a lower rate. On a $475,000 sale, a single half point is $2,375.
- What other closing costs does a seller pay?
- Title insurance for the owner's policy in many states, escrow or attorney fees, transfer taxes, recording fees, a prorated share of property taxes and HOA dues, and any repair credits negotiated after inspection. These typically add one to three percent beyond commission, varying considerably by state custom.
- Is commission deductible from my capital gain?
- It reduces the amount realized on sale, which lowers your gain — effectively the same benefit. Combined with the $250,000 exclusion for a single filer or $500,000 for a married couple on a primary residence held and occupied two of the last five years, most homeowners owe nothing regardless.
- Do flat-fee and discount brokerages save money?
- They can, particularly on higher-priced homes where a percentage fee becomes large in absolute terms. The trade-offs are the marketing effort, photography, negotiation, and transaction management you take on yourself. Compare the fee difference against a realistic estimate of how a full-service listing might affect your final sale price.
- When is the commission actually paid?
- At closing, deducted from the seller's proceeds by the settlement agent before funds are disbursed. You never write a check for it. That is also why the net proceeds figure matters more than the sale price — it is the number that actually reaches your account.
- Does the net proceeds figure include my mortgage payoff?
- No. This calculates sale price less commission and closing costs. Your remaining loan balance, plus any home equity line, is paid off from the same proceeds at closing. Subtract your payoff figure — which includes interest accrued to the closing date — to arrive at the cash you actually walk away with.
Related calculators
- Price Per Square Foot CalculatorNormalize asking prices by finished living area so you can place several properties on the same scale.
- Mortgage Payoff CalculatorSee what sending extra money toward principal each month does to your payoff date and the interest you avoid.
- Home Affordability CalculatorWork backward from your income and existing debts to the maximum home price and monthly payment you can realistically carry.