Real Estate Agent Commission Calculator
Calculate your net commission after brokerage fees, taxes, and expenses. Perfect for real estate agents planning their income and understanding their take-home pay.
Frequently Asked Questions
Agent splits typically range from 50% to 90%, depending on experience, production levels, and brokerage structure. New agents often start at 50-60%, while top producers may earn 80-90%.
Real estate agents are typically independent contractors and must pay self-employment tax (15.3%) plus federal and state income taxes. The total tax rate is usually 25-35% depending on your income level.
Franchise fees are typically 6% of gross commission, but many brokerages cap this amount. The cap varies by company and can range from $3,000 to $8,000 per transaction.
Focus on higher-priced properties, negotiate better splits, minimize marketing costs through referrals, and consider joining a brokerage with lower fees or better commission structures.
Commissions are paid at closing when the transaction is complete and funds are disbursed. The listing agent typically receives their commission first, then pays the buyer's agent.
Note: Some brokerages offer commission advances or draw programs for agents who need funds before closing.
Common deductible expenses include marketing materials, MLS fees, continuing education, vehicle expenses, home office costs, professional memberships, and client entertainment.
Important: Keep detailed records and consult a tax professional to maximize your deductions and ensure compliance.