Real Estate Commission Calculator
Calculate the dollar fee paid to the listing brokerage and buyer's brokerage, your net cash proceeds at closing after mortgage payoff and closing costs, and how commission fees reduce taxable capital gain under IRS Publication 523.
Real estate commission, seller net proceeds & broker split calculator
Commission & seller net proceeds breakdown by sale price
| Home sale price | At 4.0% total (2% + 2%) | At 5.0% total (2.5% + 2.5%) | At 6.0% total (3% + 3%) |
|---|---|---|---|
| $300,000 | $12,000 | $15,000 | $18,000 |
| $450,000 | $18,000 | $22,500 | $27,000 |
| $600,000 | $24,000 | $30,000 | $36,000 |
| $800,000 | $32,000 | $40,000 | $48,000 |
Real Estate Commission Worked Example: Seller Net Sheet & Agent Split
Selling a $450,000 home with a 2.5% listing fee ($11,250) and a 2.5% buyer-agent concession ($11,250) totals $22,500 in commission (5.0%). After paying off a $240,000 mortgage and $6,500 in title and transfer taxes, your net cash proceeds at closing are $181,000. Under IRS Publication 523, the $22,500 commission directly reduces your Amount Realized on sale, lowering any taxable capital gain dollar for dollar.
Common questions
How do real estate commissions work after the NAR settlement?
Listing agent compensation and buyer agent compensation are negotiated separately. Sellers choose their listing fee and decide whether to offer a concession toward the buyer's broker fee.
Are real estate commissions tax-deductible when selling a house?
Under IRS Publication 523, real estate commissions paid by the seller are subtracted from the gross sale price to determine Amount Realized, reducing your capital gain.
How does a 80/20 agent-broker split work?
If one side of the commission on a $450,000 sale is $11,250 (2.5%), an agent on an 80/20 split receives $9,000 before taxes and expenses while the brokerage retains $2,250.
Sources
- IRS Publication 523: Selling Your Home (Selling Expenses & Amount Realized)
- CFPB: Closing Disclosure & Settlement Cost Guide
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General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.