Real Estate Commission Calculator

Created by Tibor Pal, PhD candidate and Bogna Szyk
Reviewed by Jack Bowater
Based on research by
Baum, A.; Hartzell, D. Global Property Investment (2012)
Last updated: Mar 11, 2022
Real estate commission calculator finds the payment collected by the sales agent.

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.

How to calculate the commission

A realtor commission is typically expressed as a percentage - for example, a real estate agent may collect a 5% commission on every successful transaction. It works in an analogical manner as the regular commission:

  1. Determine the commission as a percentage of transaction value - here, P = 5%.
  2. Find out the value of the transaction - for example, V = $10,000.
  3. Calculate the realtor fee, using the following formula: C = V * P/100. In our example, commission C = $10,000 * 5/100 = $500.
  4. The real estate owner receives a sum equal to the transaction value minus commission. So, his income is equal to I = V - C, and in our example I = $10,000 - $500 = $9,500.

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

Tibor Pal, PhD candidate and Bogna Szyk
House price
$
Commission
%
Commission amount
$
Owner receives
$
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