Real Estate Commission Calculator
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 charge for finding a rental, check out the rental commission calculator.
How to calculate the commission
A realtor commission is typically expressed as a percentage - for example, a real estate agent may collect 5% commission for every successful transaction. It works in an analogical manner as the regular commission:
- Determine the commission as a percentage of transaction value - here, P = 5%.
- Find out the value of the transaction - for example, V = $10,000.
- Calculate the realtor fee, using the following formula:
C = V * P/100. In our example, commission
C = $10,000 * 5/100 = $500.
- 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 you want the VAT tax to be taken into account, try the real estate commission calculator with VAT.