How does a real estate commission split work?

Your side's commission goes to your brokerage first. Any franchise or royalty fee typically comes off the top, then the remainder is divided by your agreed split (for example 80/20), and per-deal transaction fees are subtracted. What's left is your gross take-home — before taxes and expenses.

What is a commission cap?

Some brokerages stop taking their split after you've paid them a set amount in a year (the cap); you keep 100% (minus fees) afterward. This calculator shows per-deal math — if you cap, your later deals net more.

Are commission rates standard?

No. Commissions are fully negotiable between you, your client, and your brokerage. There is no set or required rate — enter your own numbers.

Real Estate Commission Split Calculator — Your Actual Take-Home

Sale price ($)

Your side's commission (%, as agreed — negotiable)

Your split with the brokerage (your %, e.g. 80)

Franchise / royalty fee (% off the top)

Transaction / E&O fee per deal ($)

Deals per year

Gross side commission—

Your net per deal—

Net per year (at 12 deals)—

Before income taxes and business expenses. Commissions and splits are fully negotiable — there is no standard rate; enter your own agreement. Cap structures aren't modeled: after you cap, later deals net more.

Where the commission actually goes

A "$10,000 commission" is a gross number that four parties eat from: the franchise takes its royalty off the top, your brokerage takes its share of the rest, the transaction fee comes out flat, and taxes take their cut later. Most agents who run this math for the first time discover their effective hourly rate depends far more on deal volume than on squeezing one more split point out of the broker.

The uncomfortable math of volume

Try it above: moving your split from 80% to 85% on twelve deals is worth a few thousand dollars a year. Closing three more deals — the ones that die today from slow follow-up — is worth several times that. Every study of lead conversion says the same thing: response speed and touch count win deals. That's an automation problem, not a negotiation problem.

That's the pitch, plainly: the CRM behind this page answers every new lead by text within minutes and runs the follow-up until they respond — so the volume side of this calculator goes up. Free for your first 250 contacts.

FAQ

How does the split work?

Franchise/royalty comes off the top, the brokerage takes its share by your agreed split, per-deal fees subtract flat, and the rest is yours (pre-tax).

What's a cap?

Some brokerages stop taking their split after you've paid a set annual amount — you keep 100% minus fees afterward. This calculator shows per-deal, pre-cap math.

Are rates standard?

No — commissions and splits are fully negotiable, and vary by market, brokerage, and agreement.

More free tools: Mortgage payment calculator · Seller net sheet calculator · Related: Real Estate CRM

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