Enter the price of a house and the commission percentage into the real estate commission calculator. The calculator will display the total commission earned.
Real Estate Commission Formula
The following formula is used to calculate the total commission earned on a house sale.
C = P * CM/100
- Where C is the commission total
- P is the house price
- CM is the commission %
How to calculate a real estate commission
- Determine the total house price
This will be the price of the house the buyer actually pays. This may not necessarily be the list price.
- Determine the % commission received
This will be a percentage of the total house price a seller or agent receives.
- Calculate the total commission amount
This will be equal to the total purchase price times the commission rate.
A real estate commission is a percentage of money earned by a real estate agent on a house sale.
On average the real estate commission tends to range between 2.5-3% for both the buyer and seller agents.
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