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Real Estate Commission Calculator

Calculate real estate commissions after the NAR settlement. Compare old vs new commission models, see how agent fees are split, and explore five negotiation scenarios to save thousands on your home sale.

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Expected or actual home sale price
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Typical range: 5-6% (trending lower post-NAR)
How commission is divided between agents
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Listing (seller's) agent percentage
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Buyer's agent percentage
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How to Use This Calculator

Commission Calculator tab

The default tab. Enter your sale price, total commission rate, and agent split to see the dollar amount each agent earns and your net proceeds after commission. Adjust the listing/buyer agent split under “More options” if your deal uses a non-standard division.

Post-NAR Settlement tab

Compare the old model (seller pays both agents through MLS) with the new model after the August 2024 NAR settlement. Choose who pays the buyer’s agent — buyer, seller (concession), or split — and see the financial impact on both parties. Understand how decoupled commissions change your bottom line.

Negotiate & Save tab

Compare five commission scenarios side by side: traditional 6%, negotiated 5%, discount broker 4%, flat-fee MLS + buyer agent, and FSBO (For Sale By Owner). Includes a FSBO reality check that adjusts for the average sale price discount on unrepresented homes so you can see the true net savings.

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The Formula

Real estate commission is straightforward, but the split and structure matter:

Total Commission = Sale Price × Rate%

Listing Agent = Sale Price × Listing%
Buyer Agent = Sale Price × Buyer%

Seller Net = Sale Price − Total Commission
FSBO Adjusted Net = Sale Price × (1 − FSBO Discount%)

On a $500,000 home at 6%, the total commission is $30,000. If split evenly, each agent’s brokerage receives $15,000 — before their own brokerage split (typically 70/30 to 50/50 for the individual agent).

Post-NAR settlement, the key question is who pays the buyer’s agent. If the buyer pays their own agent, the seller’s commission drops to just the listing side (often 2.5–3%). The FSBO formula accounts for the statistical reality that homes sold without an agent tend to sell for 5–6% less, which can offset commission savings.

Example

Mike & Lisa — selling their $500K home in Denver, CO

Mike and Lisa are selling their home valued at $500,000. Their listing agent quoted 6% total (3% listing, 3% buyer agent). They want to understand all their options after the NAR settlement.

Commission Calculator tab

Sale price$500,000
Total commission (6%)$30,000
Listing agent (3%)$15,000
Buyer agent (3%)$15,000
Seller net$470,000

At the traditional 6% rate, Mike and Lisa pay $30,000 in total commission and walk away with $470,000.

Post-NAR Settlement tab

Old model (seller pays both)$30,000
New model (buyer pays own agent)$15,000
Seller savings$15,000
Net if buyer pays at 2.5%$10,000 saved

If the buyer pays their own agent under the new model, Mike and Lisa save up to $15,000 — paying only the listing side. In practice, many sellers still offer a concession, but even a reduced 2% buyer concession saves $5,000 vs the old 3% model.

Negotiate & Save tab

Traditional 6%$30,000
Negotiated 5%$25,000
Discount broker 4%$20,000
Flat-fee MLS + 2.5% buyer agent$12,900
FSBO (adjusted for price discount)$0 commission, ~$25K lower sale
Savings: discount broker vs traditional$10,000

A discount broker at 4% saves Mike and Lisa $10,000 compared to the traditional 6%. Even negotiating down to 5% saves $5,000. The flat-fee MLS option is the cheapest at $12,900 total, but requires more hands-on work.

FAQ

The NAR (National Association of Realtors) settlement refers to the landmark Sitzer/Burnett v. NAR case resolved in August 2024. It required three major changes: (1) buyer agent compensation can no longer be advertised in the MLS, (2) buyers must sign a written representation agreement before touring homes, and (3) the agreement must specify the buyer agent’s fee upfront. This decoupled buyer and seller agent compensation, making fees more transparent and negotiable for everyone.
In 2026, average real estate commissions range from 5–5.5% of the sale price, down from the historical 5.5–6% standard. The NAR settlement accelerated this decline by making fees more transparent. Listing agent rates average 2.5–3%, while buyer agent fees (now negotiated separately) average 2–2.5%. Rates vary by market — competitive metro areas tend to have lower rates, while rural markets may still be closer to 6%. Commission has always been negotiable by law.
Yes — and you always could. There is no law or standard requiring a specific commission rate. The NAR settlement made negotiation even more common by decoupling buyer and seller fees. Strategies include: offering a lower rate for higher-priced homes, asking for a reduced listing fee in exchange for doing your own photos and marketing, bundling the buy and sell with one agent for a discount, or using a discount brokerage. On a $500,000 home, negotiating from 6% to 5% saves $5,000.
A flat-fee MLS service lists your home on the Multiple Listing Service for a one-time fee ($200–$500) instead of a percentage-based listing commission. You handle showings, negotiations, and paperwork yourself (or pay a la carte for specific services). You may still offer a buyer agent commission (typically 2–2.5%) to attract represented buyers. Popular services include Houzeo, Beycome, and ISoldMyHouse. It’s best for sellers comfortable managing the sale process.
FSBO (For Sale By Owner) accounts for about 7% of home sales. While you save the listing agent commission (2.5–3%), NAR data shows FSBO homes sell for a median of $380,000 vs $435,000 for agent-assisted sales — a roughly 5–6% price discount that can offset your commission savings. FSBO works best for experienced sellers in hot markets, or when selling to someone you already know. If you go FSBO, consider at minimum using a flat-fee MLS service for exposure.

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