About the Agent Commission Split Calculator
A real estate commission passes through several hands before the agent sees it. This calculator starts with the commission on your side of the deal and takes off, in order, any referral fee owed to another agent, the brokerage’s share under your split, the franchise royalty, a team leader’s split if you are on a team, and flat transaction or other fees. What remains is your gross take-home before income and self-employment taxes.
It handles capped brokerage models too: enter the yearly cap and how much company dollar you have already paid this year, and the brokerage share stops once the cap is reached, after which you keep 100% of the split (less fees). The calculator also shows how much cap remains and roughly how many similar deals it will take to hit it. A pie chart shows where every dollar of the commission goes.
Commission rates and splits are negotiable and vary by brokerage, market and transaction, and since 2024 buyer-agent compensation in the US is negotiated separately in many transactions. Enter the commission rate for your side of the deal, and check your independent contractor agreement for the exact order in which fees are taken.
With the default inputs, the agent take-home (before tax) is $6,605.00. Change any value above to recalculate instantly.
How to use the agent commission split calculator
- 1Enter the sale price and the commission rate on your side of the deal.
- 2Add any referral fee you owe.
- 3Enter your split and, if your brokerage caps, the cap and what you have paid toward it.
- 4Add any franchise royalty, team split and per-deal fees.
- 5Review your take-home and how close you are to capping.
Formula and method
Gross commission G is the sale price times your side’s commission rate. Any referral fee is taken off the top. The brokerage share is the remaining commission × (1 − your split); with a cap, the brokerage takes no more than the cap minus what you have already paid this year. The franchise royalty is a percentage of the post-referral commission.
Your share after the brokerage is reduced by the team leader’s percentage if you are on a team, then by the royalty and flat transaction and other fees. The order of deductions differs between brokerages, so check your agreement. Cap remaining is the cap minus everything paid toward it including this deal, and deals to cap divides that by the uncapped brokerage share of a similar deal.
- G
- Gross commission = price × rate
- Split
- Agent’s share of the post-referral commission
- Cap
- Maximum the brokerage collects per year
Worked examples
$400k sale at 2.5% on a 70/30 split with a $20k cap
The $10,000 commission is split 70/30, so the brokerage takes $3,000. After the $395 transaction fee you keep $6,605, or 66% of the commission. With $12,000 already paid toward a $20,000 cap, $5,000 remains — about 1.7 more deals like this.
Same deal when you are about to cap
Only $1,500 of cap remains, so the brokerage takes $1,500 instead of $3,000. You keep $10,000 − $1,500 − $395 = $8,105, and later deals this year pay no brokerage split.
Referral deal on a team at a franchise brokerage
A $9,000 commission loses $2,250 to a 25% referral fee. The brokerage takes 20% of the remaining $6,750 ($1,350) and the franchise takes a 6% royalty ($405). The team leader takes half of the $5,400 left, and after the $250 fee the agent keeps $2,045 — under 23% of the gross.
Frequently asked questions
How do real estate commission splits work?+
The commission on each side of a sale is paid to the brokerage, which keeps a share and pays the rest to the agent under their split agreement. On a 70/30 split, the agent receives 70% and the brokerage 30%, before any other fees.
What is a commission cap?+
A cap is the maximum amount of company dollar a brokerage collects from an agent in a year. Once the agent’s payments to the brokerage reach the cap, the agent keeps 100% of further commissions for the rest of the cap year, usually minus small transaction fees.
What is a typical real estate agent split?+
Splits vary widely. New agents at traditional brokerages often start around 50/50 to 70/30, experienced agents may earn 80/20 or 90/10, and some models charge flat monthly or per-transaction fees instead of a percentage split.
Do agents pay taxes on their commission?+
Yes. Most US agents are independent contractors who receive a 1099, so no tax is withheld. They owe income tax plus self-employment tax on net earnings, after deducting business expenses such as MLS dues, marketing and mileage.
How are referral fees paid?+
A referral fee is normally paid from the receiving agent’s side of the commission at closing, brokerage to brokerage, before the agent’s split is calculated. Fees of 25%–35% of the commission are common, but the amount is negotiated between agents.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.