Enter the price of a house and the commission percentage into the real estate commission calculator. The calculator will display the total commission earned.
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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 %
Real Estate Commission Definition
A real estate commission is a total monetary amount that a real estate agent earns on the sale of a real estate property
How to calculate real estate 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.