Commission is a negotiated percentage of the sale price, typically split between the listing agent and the buyer’s agent.
How it works
The sale price times the total commission rate gives the total commission owed. That total splits between the listing and buyer’s agent sides according to the agreed percentage split, and subtracting the total commission from the sale price gives net proceeds before other closing costs.
What this does not include
This doesn’t include other closing costs (title insurance, transfer taxes, escrow fees) — commission is typically the largest single cost at closing but not the only one, and this site’s separate closing-costs calculator covers the broader picture.
How to use this calculator
- Enter the sale price, total commission rate, and the listing agent’s share of that commission.
A worked example
A $450,000 sale at a 6% commission rate, split 50/50 between listing and buyer’s agents: total commission = $27,000, listing side = $13,500, buyer side = $13,500, net proceeds to seller = $423,000.
What the variables mean
| Variable | Meaning |
|---|---|
| Sale price | Final agreed sale price |
| Commission rate | Total commission percentage, split between both agents |
| Listing split | How the total commission divides between listing and buyer’s agent |
Edge cases worth knowing
Commission rates and splits are negotiable, not fixed by law — the 6% total and 50/50 split used here are common conventions, not universal requirements, and both figures vary by market and negotiation.
A sale price of zero makes the calculation meaningless, so the calculator declines to show a result for that input.
Frequently asked questions
Is the commission rate fixed by law?
No — commission rates are negotiable and vary by market, brokerage, and individual agreement; there is no standard or legally fixed rate.
Who typically pays the commission?
Historically the seller has paid the full commission out of sale proceeds, though how commissions are negotiated and disclosed has been evolving following recent industry-wide settlement changes.
Does a 50/50 split always apply?
No — the split between listing and buyer’s agents is negotiated as part of the listing agreement and can vary from a straight 50/50 split.
