Real Estate Commission Calculator

Created by Tibor Pál, PhD candidate and Bogna Szyk
Reviewed by Jack Bowater
Based on research by
Baum, A.; Hartzell, D. Global Property Investment (2012)
Last updated: Feb 19, 2023

This real estate commission calculator finds the fee collected by the sales agent. It assumes no additional payments except for the realtor fee settled by the house owner. If the system works differently in your country, please contact us - we can create a version of the realtor commission calculator that will best suit your needs.

This calculator deals with sales only - if you want to find the charge for selling a rental, check out the rental commission calculator.

Besides, you may find our cap rate calculator helpful in property evaluation, so you know for certain whether or not you can support your investment decisions on the real estate market.

What is the realtor commision?

The realtor commission, a.k.a the real estate commission, is a fee you pay to a real estate agent for their services in a successful transaction. It is usually expressed as a percentage of the selling price. Realtor commission rates are most often between 4% and 6%.

How do I calculate the realtor commission?

To determine the realtor commission, you need to:

  1. Determine the commission rate. It's usually around 5%.
  2. Determine the selling price.
  3. Calculate the realtor fee using the formula
    commission = selling price × rate / 100.

If your state or nation takes VAT into account, try the real estate commission calculator with VAT calculator.


What is the 5% real estate commission for the selling price $10,000?

The commission is $500. To arrive at this answer, it suffices to compute 5% out of $10,000:
$10,000 × 0.05 = $500. If you struggle with such calculations, use an online realtor commission calculator.

Who is responsible for paying the real estate commission in a sale?

Technically, it is the seller who pays the realtor commission. However, the money comes from the payment made by the buyer, and sellers usually factor the commission into the price of the property. So, in the end, the buyer pays the real estate commission, even if indirectly.

Tibor Pál, PhD candidate and Bogna Szyk
House price
Commission amount
Owner receives
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