Commission Split Calculator
Calculate real estate agent gross and net commissions after broker splits.
Understanding Real Estate Commission Structures
Real estate commissions flow through several layers before reaching the individual agent. Understanding each layer helps agents negotiate smarter and buyers and sellers understand where their money goes.
The Commission Flow
Total commission is typically 4–6% of the sale price and is paid by the seller from proceeds at closing. This pool is split between the listing brokerage and buyer's brokerage — often 50/50, though splits can vary. Each brokerage then splits its portion with the individual agent per their brokerage agreement.
Broker Splits
New agents often start at 50/50 or 60/40 splits with their broker. Experienced top producers may negotiate 80/20, 90/10, or even 100% splits in exchange for paying a monthly desk fee. Cap models — where agents pay a fixed annual cap to the broker and then keep 100% thereafter — have become popular through national franchises.
Buyer's Agent Compensation Post-NAR Settlement
Following the 2024 NAR settlement, buyer's agent compensation can no longer be listed in MLS. Buyers now negotiate compensation directly with their agent in a buyer representation agreement, and sellers may choose whether to offer any concession toward buyer's agent fees. This has made the buyer-side split more variable and negotiable than it was historically.
Maximizing Net Income
For agents focused on maximizing net income, negotiating a better broker split is often more impactful than closing one extra transaction. Moving from a 70/30 split to an 80/20 split on $600,000 in annual gross commissions is equivalent to adding $60,000 in annual earnings — the equivalent of roughly two average transactions in most markets.