Our real estate commission calculator helps you estimate the total amount you'll pay in realtor fees when selling your home. You can also use it to see your net profit (after realtor commissions, closing costs, and loan payoff), based on your home's target sales price.
Real estate agent commissions are usually the largest cost of selling a home. Home sellers pay an average total commission rate of 5–6%, which includes the seller's agent fee and the buyer's agent fee. On a $400,000 home, that can equal $24,000 in realtor commissions!
However, it's possible to pay less. Realtor fees are negotiable, and many real estate brokerages offer low commission rates.
For example, Clever Real Estate can connect you with top-rated agents in your area who offer half the typical listing fee (1.5% instead of 3%). This rate saves you $6,000 on a $400,000 home sale.
If you're interested in these savings, simply fill out this short form to get vetted agent recommendations sent to your inbox. You can interview as many realtors as you'd like to find the right fit. Comparing agents is free, and there's no obligation to move forward with one.
Real estate commission calculator
Understanding the costs of selling your home is crucial, and our real estate commission calculator is designed to help you do just that. Here's how to use this tool:
- Enter the sale price. Start by entering the sale price you expect to receive for your home. For example, if you aim to sell at $300,000, input that amount in the 'Sale Price' field.
- Indicate your mortgage status. Indicate whether you have an outstanding mortgage that needs to be repaid from the sale proceeds, and if so, enter your outstanding balance.
- Fill in the listing fee and buyer's agent commission. These percentages are critical to determine the commission paid to the real estate agents involved. Input your expected commission rates, or use average commission rates by state as a guide.
- Input closing costs. Typically a percentage of the sale price, closing costs cover various fees required to complete the sale. Input your estimated figure to see how it affects your total costs and net proceeds.
- Review your costs and net proceeds. The calculator will display your total closing and commission costs, and what you'll net from the sale after these expenses.
⚠️ Important: This calculator is intended for estimation purposes only and should not replace a seller's net sheet, which provides a more accurate representation based on actual figures and is typically provided by a realtor, title company, or attorney.
Selling a home costs a lot of money, and seeing these numbers might be overwhelming at first.
Remember that there are ways you can lower your costs and walk away with more money. One way is working with a low-commission agent. To see how much of a difference this would make, input a standard 3% listing fee, then compare it with a 1.5% listing fee.
Realtor earnings on a $500,000 home sale
Here’s a quick example of how to calculate total real estate agent fees using a 6% commission rate and $500,000 home sale:
- Determine your total commission rate. A 5-6% total commission is typical, but the actual rate will be specified in the listing agreement you sign with your agent, and you can save money by listing with a low-commission realtor.
- Divide that total commission rate by 100 (or move the decimal point to the left two places). Using our 6% example, this would give you 0.06.
- Multiply the total commission rate by the final sale price. So for a $500,000 home, you'd multiply 0.06 x 500,000.
- Now you have your total commission! You'd pay $30,000 in total commission (covering both the listing agent and buyer's agent) out of your sale proceeds at closing.
Here’s the same real estate commission calculation expressed as a single formula:
(6/100) * $500,000 = $30,000
Quick definitions: Real estate commission calculator terms to know 👇
- Target sale price: Your estimated or desired final sale price for your home. Your real estate agent can prepare a comparative market analysis (CMA) to help you develop a realistic target final selling price.
- Total commission: The total commission percentage for both the buyer's and seller’s agents who handle the sale (the seller typically covers both agent fees).
- Listing fee: The share of the total commission that goes to the seller’s agent for marketing and selling the home.
- Buyer’s agent fee: The share of the total commission that goes to the buyer’s agent for bringing a qualified buyer who purchases the home.
- Estimated closing costs: A rough estimate for other transactional costs — like taxes and transfer fees — that sellers typically cover with their sale proceeds at closing.
- Loan payoff amount: The seller’s remaining balance on their home loan, which they must pay off with sale proceeds at closing. You can usually find this information on your monthly mortgage statement. Or you can request a payoff quote from your lender.
- Net to seller: Your estimated profit (or deficit) once all your home selling costs and outstanding debts have been deducted from your gross sale proceeds.
How do real estate agent commissions work?
In a conventional real estate deal, the seller’s and buyer’s agents each receive a share of the total realtor commission fee after the sale closes.
- The seller’s agent collects a listing fee for marketing and selling the home.
- The buyer’s agent collects the buyer’s agent fee for bringing a qualified buyer to purchase the home.
The two real estate agents usually split a full commission roughly equally (so if the commission is 6%, each agent gets 3%).
🔎 Example: Standard real estate commission calculation for a $500,000 sale
| Commission fee | Rate | Cost |
|---|---|---|
| Listing fee | 3% | $15,000 |
| Buyer’s agent fee | 3% | $15,000 |
| Total commission paid | 6% | $30,000 |
The actual commission split will be defined in the listing agreement the seller signs with their agent before putting their home on the market.
If the seller is working with a low-commission real estate broker or agent, such as Clever Real Estate, each agent might collect different commission split percentages (ex: the listing agent takes 1.5%, but the buyer’s agent still gets 3%). Side note: That's roughly $5,500 in savings for the seller.
🔎 Example: Low-commission realtor calculation for a $500,000 sale
| Commission fee | Rate | Cost |
|---|---|---|
| Listing fee | 1.5% | $7,500 |
| Buyer’s agent fee | 3% | $15,000 |
| Total commission paid | 4.5% | $22,500 |
Who pays the realtor commission?
Traditionally, the home seller pays the entire commission, split between the listing agent and the buyer’s agent.
However, recent changes following the NAR settlement mean sellers are no longer required to offer a commission to the buyer’s agent. This shift allows sellers more flexibility in determining whether or not to cover the buyer’s agent’s fee.[1]
While sellers can still offer a commission to attract more buyers, it's no longer an automatic part of the process.
⚖️ NAR settlement: Key changes to realtor commissions
Here's a quick overview of the adjustments:
- Buyers now directly negotiate their agent's fees, and sign a buyer's agency agreement before home tours, aiming to reduce seller costs and enhance fee transparency.
- Listing agents can no longer advertise fees for the buyer’s agent. This responsibility now falls to buyers and their agents.
- MLSs now include a field for seller concessions. This allows buyers to save if their negotiated fees are below this amount.
- Buyer's agents must have a signed agreement, detailing their services and fees before working with clients, promoting clearer fee structures.[1]
You can learn more about the key changes from the NAR settlement in Steve Nicastro's recent appearance on Yahoo Finance.
How this impacts buyers and sellers
Sellers have continued to pay the buyer's agent fee in most markets, although it's now another part of negotiations.
Most sellers don’t pay real estate fees directly out of pocket. Typically, these commission fees are factored into the home’s list price and deducted from the seller’s net proceeds at closing. This practice can still be applied if sellers agree to cover a buyer’s agent commission.
For buyers, this shift means they may need to negotiate directly with their agent regarding payment. In some cases, this could lead to buyers covering the fee out of pocket, though some may be able to factor it into their mortgage if lenders allow.
Why would sellers still offer to pay the buyer's agent?
Sellers might continue to offer a buyer’s agent commission to remain competitive in the market. By covering this cost, sellers can attract more buyers and potentially secure a faster sale at a higher price.
While buyers may be responsible for paying their agent’s commission in some cases, many sellers still build the cost into the home’s list price. Even if the buyer technically pays the commission, the funds might come from the buyer’s mortgage, spreading the cost over many years rather than being an up-front expense.
Find the average realtor commission rate by state
| State | Average commission rate |
|---|---|
| Nevada | 3.51% |
| Massachusetts | 4.47% |
| Idaho | 4.68% |
| Montana | 4.68% |
| Utah | 4.68% |
| Wyoming | 4.68% |
| Washington, D.C. | 4.82% |
| California | 4.99% |
| Oregon | 5.00% |
| Alaska | 5.04% |
| Hawaii | 5.04% |
| Florida | 5.05% |
| Illinois | 5.07% |
| New Jersey | 5.07% |
| Washington | 5.18% |
| Virginia | 5.19% |
| Connecticut | 5.25% |
| Maine | 5.25% |
| New Hampshire | 5.25% |
| Rhode Island | 5.25% |
| Vermont | 5.25% |
| Colorado | 5.29% |
| Arkansas | 5.30% |
| Delaware | 5.30% |
| Kentucky | 5.30% |
| Louisiana | 5.30% |
| Maryland | 5.30% |
| Mississippi | 5.30% |
| West Virginia | 5.30% |
| Alabama | 5.31% |
| Indiana | 5.31% |
| Pennsylvania | 5.35% |
| New York | 5.36% |
| South Carolina | 5.36% |
| Arizona | 5.40% |
| North Carolina | 5.47% |
| Iowa | 5.51% |
| Kansas | 5.51% |
| Nebraska | 5.51% |
| North Dakota | 5.51% |
| South Dakota | 5.51% |
| Tennessee | 5.54% |
| Ohio | 5.60% |
| Georgia | 5.62% |
| New Mexico | 5.68% |
| Oklahoma | 5.68% |
| Missouri | 5.73% |
| Texas | 5.76% |
| Minnesota | 5.77% |
| Wisconsin | 5.78% |
| Michigan | 5.86% |
| National Average | 5.32% |
How to save on real estate commission
You can save on real estate commission by working with a low-commission broker or by negotiating with a realtor yourself.
Hire a low-commission real estate company
There’s a wave of new real estate companies offering the same general listing services and support as conventional realtors for a low flat fee or percentage (as little as 1–2%) instead of the typical 2.5–3% rate.
Although the percentage difference seems small, it can add up to thousands of dollars in savings for home sellers. Different companies create these savings in different ways:
- Agent finding tools, like Clever Real Estate, connect you with local realtors from top brokerages (think Keller Williams, RE/MAX, Berkshire Hathaway) and pre-negotiate lower commission rates on your behalf.
- Full-service discount brokers, like Redfin and Prevu, use technology and team-based service models to lower operating costs and create savings.
» COMPARE: The companies with the lowest commission rates
If you’re looking to save without sacrificing service, Clever Real Estate is our top pick. It offers some of the lowest rates and biggest average savings of any nationwide brand: 1.5% listing fees (or $3,000 minimum).
Clever matches you with multiple local agents to choose from. And Clever’s partner agents represent top regional and national brokerages, like Keller Williams and RE/MAX. That means you get the same experience and support you’d expect from a conventional realtor — while saving thousands on commission. Fill out this short quiz to get matched with top-rated local agents today!
Discount real estate brokerage Redfin offers a 1.5% listing fee (though minimum fees apply and vary by market). Redfin has some solid agents, but it offers less selection than Clever. The style of service and support differs from what you get through Clever and conventional realtors: expect a slightly more tech-driven, hands-off experience.
Ideal Agent is an agent matching service like Clever, but its rates are higher (2% vs. Clever’s 1.5%). It also offers less selection: you get matched with only one agent (Clever customers can choose between two to three and even more if they want). Ideal Agent has about 2,000 agents nationwide versus Clever’s 18,000 agents.
Try to negotiate a lower commission rate with a conventional realtor
You can absolutely try to negotiate commission rates with a conventional real estate agent. But it can be difficult — and even a bit stressful. You’ll have to negotiate with a professional negotiator, which isn’t very fun to do (at least for most people). And don’t expect a major price reduction — fractions of a percentage point are more realistic.
This is where agent finding services like Clever and Ideal Agent can offer serious value: they have more leverage (a recurring source of new business for real estate agents at no up-front cost) to negotiate lower rates for you. For example, a one-off deal for a 1.5% fee doesn't make sense for an agent. However, five 1.5% deals a month start to change the margins and make a big impact on the agent’s overall revenue.
👉 The bottom line: It's 100% worth trying to negotiate rates, especially if you've already found an agent on your own that you really want to work with. Just don't expect a major (or any) price reduction. If you don't have an agent lined up — or just want to compare options, which we recommend — definitely try the agent finding service route.
Agent finding services like Clever, for example, can save you thousands on commission fees compared to if you'd found the same agent on your own. It’s also free with no obligation, so there's no risk in trying it out and seeing if you like the agents Clever matches you with.
Summary: How to calculate real estate commission
- You can calculate your real estate agent's commission in dollars by dividing the commission percentage by 100, then multiplying it by your home’s sale price.
- Here's the formula for calculating real estate commission:
Commission = (Commission rate / 100) * Sale price - Total commission includes both the listing agent’s fee and the buyer’s agent fee, which are typically 2.5–3% each.
- Sellers usually cover both realtors’ fees out of their sale proceeds.
- The total average commission rate nationwide ranges from 5-6% — but actual fees vary by agent, brokerage, home value and type, and local market trends.
- If you want to save on commission, we recommend trying a reputable low-commission realtor or Clever Real Estate, which pre-negotiates low listing fees with top local real estate agents.
- You can also try negotiating commission rates with realtors on your own, but it may be harder to get a significant rate reduction.
FAQ about real estate commission calculators
How do you calculate real estate commission?
Real estate commissions are usually calculated based on a percentage that’s multiplied by the contract selling price of the home. For example, if the total commission percentage in your listing agreement is 6% and the selling price of your home is $500,000, the total commission fee would be $30,000. Use our real estate commission calculator to easily compare commission costs.
Are realtor commission fees calculated based on gross or net sale proceeds?
Real estate commissions are calculated based on gross sale proceeds, not net sale proceeds. That means the total commission gets applied to the final selling price of your home, before any closing costs or other fees have been deducted.
How much do real estate agents make per home sale?
An individual real estate agent usually makes between 2–3% commission per home sale, which means you’ll pay a combined total of 4–6% total commission on the sale of your home. That translates to $10,000–15,000 in real estate commission per agent on a $500,000 home sale. If a real estate agent represents both the buyer and the seller of the home, they’d make $20,000–30,000 on a $500,000 home sale. According to the U.S. Bureau of Labor Statistics, the 2024 median income for a real estate agent was $63,060, and the highest 10% of agents earned more than $160,980.[2]
What percentage do most realtors charge?
Most real estate agents charge 2.5–3% of a home's final sale price for their services. The national total average commission rate is between 5-6%. In a typical home sale, both realtors' commissions (the buyer's and the seller's) are covered by the seller out of the home sale proceeds. You can save on commission fees by trying to negotiate lower rates yourself or finding your agent through a low-commission real estate company.
Is a 3% commission a lot?
A 3% commission for an experienced agent used to be the standard agent’s commission. However, average commission rates are declining across the real estate industry, making it harder for traditional realtors to justify a 3% commission. You can get a highly qualified, dedicated agent for less than 3%.
