Tiny Toolkit

Commission Split Calculator

Calculate net commission earnings after applying a brokerage split to a gross commission amount. Enter the total commission and your split percentage to see what you take home, what goes to the brokerage, and the effective rate. Useful for real estate agents evaluating offers from different brokerages, comparing 70/30 vs. 80/20 vs. 100% plus desk fee structures.

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Frequently Asked Questions

How is a real estate commission typically split?
A standard real estate commission is 5 to 6% of the sale price, split between the listing agent and the buyer's agent (often 50/50). Each agent then splits their portion with their brokerage at a rate negotiated in their independent contractor agreement, often 70/30 or 80/20 in the agent's favor.
Can commission splits be customized?
Yes. Commission splits are negotiable. Buyer and seller agents may agree to unequal splits; team structures often involve a team leader taking a percentage off the top; some brokerages use a cap model where the agent keeps 100% after paying a fixed annual fee.
What if the splits do not add up to 100%?
The calculator requires splits to total exactly 100% to calculate accurate payouts. If your splits sum to less than 100%, unallocated commission may represent a brokerage override or referral fee. Adjust the party splits to account for all recipients of the commission.
How is commission calculated on a sale?
Total Commission = Sale Price x Commission Rate / 100. Each party's payout = Total Commission x their split percentage / 100. For example, a $500,000 sale at 5% generates $25,000 total commission. A 50% split gives each side $12,500.

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Related Articles

How Real Estate Commission Splits Work

A 5% commission on a $400,000 home is $20,000, but it doesn't all go to one agent. Here's how commission flows from the seller through brokerages to individual agents.

4 min read