How this works
Your gross commission is the sale price times your side’s rate. If your brokerage charges a franchise fee, it comes off the top of that gross. What’s left is divided between you and your brokerage at your split, so on a 70/30 split you keep 70%.
If you enter the cap you still owe for the year, the brokerage takes no more than that; once your cap is met you keep 100%. A team split to your team lead comes out of your share, and the flat transaction fee comes off last. Buyer-side compensation, if you enter it, shows what the seller pays in total but doesn’t change your net.
The two lines under your results show the levers. The first is what another $10,000 in sale price adds to your net on this deal. The second compares a 2% higher price with two more points on your split. On a single sale a better split usually adds a little more to your own check, but a higher price also puts thousands more in your seller’s pocket, happens deal after deal, and doesn’t need a renegotiation with your broker. That’s why the price you get for sellers is the number that builds a business.
Estimates before tax. Brokerages calculate splits, fees and caps in different orders; check yours against your independent contractor agreement.
Questions
How is a real estate commission split?
The commission for your side of the sale is paid to your brokerage, not to you. The brokerage takes any franchise fee off the top, then splits the rest with you at the percentage in your agreement (for example 70/30). Team agents then split their share with the team lead, and most brokerages charge a flat transaction fee per deal.
What is a commission cap?
A cap is the most your brokerage takes from you in a year. Once your share to the brokerage reaches the cap, you keep 100% of your split for the rest of that year, often minus a small per-deal fee. Enter what you still owe toward your cap to see how it changes this deal.
Who pays the buyer’s agent after the NAR settlement?
Since August 17, 2024, offers of buyer-agent compensation can’t be published on the MLS, and buyers sign a written agreement with their agent before touring. A seller can still agree to pay some or all of the buyer’s agent’s compensation, and it can be negotiated as part of the offer. Commissions have always been negotiable.