Real Estate Commission Calculator
Work out the commission on a sale in seconds: the agent's fee, any tax on it, how it splits between the listing and buyer's agents, what the agent takes home and what the seller nets. It works in any currency.
How real estate commission is calculated
Commission is a percentage of the sale price, agreed in the listing agreement before the property goes on the market:
Commission = sale price × commission rate
Take a $400,000 sale at 5%: the total commission is $20,000. In the US that is usually shared between the listing agent and the buyer's agent, so each side gets $10,000. Each agent's side then goes to their brokerage, which pays the agent their split. An agent on a 70/30 split takes home $7,000 before their own expenses and taxes.
Where tax is charged on the fee, it comes on top. A UK agent charging 1.2% plus 20% VAT on a £300,000 sale earns £3,600, and the seller pays £4,320. Check whether a quote includes the tax: in the UK, quotes should state it, and in Australia many rates are quoted before GST.
Typical commission rates by country
Rates are negotiable everywhere, and they vary by region, price and how much the agent does. These are typical starting points, not rules.
| Country | Typical rate | Who pays |
|---|---|---|
| United States | About 5.4% in total, roughly half to each side (Clever Real Estate survey, 2025) | Usually the seller; the buyer's agent's pay is now agreed in writing with the buyer |
| United Kingdom | About 1.2% plus VAT for sole agency, around 1.4% including VAT (HomeOwners Alliance) | The seller; buyers pay no agent fee |
| Australia | About 2% to 2.9% depending on the state, often plus 10% GST | The seller (vendor) |
| Germany | Often 3.57% per side including 19% VAT, so 7.14% in total | Split equally between buyer and seller when the seller hired the agent (BGB § 656c) |
Who pays the commission in the US now
Since 17 August 2024, under the NAR settlement rules, offers of pay to the buyer's agent can no longer be made on the MLS, and buyers must sign a written agreement with their agent before touring a home. Sellers can still agree to pay the buyer's agent, and many do, but it is now negotiated deal by deal. That is why the calculator lets you set the buyer's agent's share, or turn it off.
What the seller actually nets
The "seller nets" figure above is the sale price minus the commission, its tax and any other selling fees you enter. The money that reaches the seller's account is lower: the remaining mortgage, any capital gains tax, transfer taxes, and closing, conveyancing or legal costs all come out too. Ask your agent or conveyancer for a full net sheet before you accept an offer.
Frequently asked questions
How do you calculate real estate commission?
Multiply the sale price by the commission rate. A 5% commission on a $400,000 sale is $400,000 × 0.05 = $20,000. If tax such as VAT or GST is charged on top, add it to the commission. If the commission is shared with the buyer's agent, split the total by the agreed shares.
How much is a 6% commission on a $500,000 house?
$30,000. Split equally between the listing agent and the buyer's agent, each side gets $15,000 before their brokerage takes its share.
Is commission charged on the sale price or on the profit?
On the sale price. The commission is a percentage of what the property sells for, whatever the seller paid for it or still owes on the mortgage.
Is real estate commission negotiable?
Yes. No law sets the rate in the US, the UK or Australia. Agents set their own fees, and sellers can negotiate the rate, a fixed fee or a tiered rate that rises for a higher price.
References
- HousingWire (2025). Real estate agent commission rates since the NAR settlement (Clever Real Estate survey).
- HousingWire (2025). Buyer agent commissions since the NAR settlement.
- HomeOwners Alliance. Estate agent fees and how you can save.
- Local Agent Finder. Real estate agent commission: rates and how to calculate.
- Bundesministerium der Justiz. BGB § 656c: Lohnanspruch bei Tätigkeit für beide Parteien.
- National Association of Realtors. NAR settlement FAQs.