Real Estate Commission Calculator

A tiered or graduated split raises the agent's percentage once they hit a production milestone. An agent might start the year at 70% and move to 85% after producing $50,000 in gross commission. Some brokerages run a cap instead, which is the same mechanism at its limit: once the brokerage has collected a set dollar amount from an agent in the anniversary year, the agent moves to 100% for the remainder.

The detail that causes most payout disputes: the threshold is measured in gross commission produced, not in commission the agent has earned. An agent on a 70% split who has been paid $35,000 has produced $50,000 — those are different numbers and only one of them counts toward the tier. This calculator asks for production on both the threshold and the prior-period field for exactly that reason.

Because thresholds are crossed mid-deal, a single transaction often pays two different rates. The portion of the splittable base that fits under the remaining threshold pays tier 1; everything past it pays tier 2. Example 2 above walks through a deal that straddles.

Tiers reset — usually on the agent's anniversary date or on January 1. When the period rolls over, the prior-production field goes back to zero and the agent starts again at tier 1.

A referral fee compensates the agent or brokerage that sent the client. It commonly runs 20% to 35% of the gross commission and is paid brokerage-to-brokerage, not agent-to-agent — most states require the compensation to move between licensed brokers.

Referral fees come off the gross commission before the split. That means the brokerage shares the cost proportionally rather than the agent absorbing all of it. Example 3 shows the effect: a 25% referral on a $20,000 commission costs the brokerage $1,500 of its own margin.

The fee is documented on the referral agreement and then itemized on the Commission Disbursement Authorization so the title company can wire the referring brokerage directly at closing rather than routing money through two brokerages after the fact.

Verify your brokerage's policy before agreeing to a referral — some cap the percentage, some require written approval, and some prohibit outbound referrals entirely.

Brokerages operating under a national brand pay that brand a royalty on production — typically 5% to 8% of gross commission, often with an annual per-agent cap. Independent brokerages pay none, which is why an 80% split at a franchised office and an 80% split at an independent can pay out noticeably differently on the same sale price.

Like referral fees, the franchise fee is deducted from gross before the agent/brokerage split. And like referral fees, it is calculated on the original gross. When both apply, they are two separate percentages of the same number, not a sequence — Example 5 shows what going sequential does to the math.

Whether the fee is visible to the agent varies. Some brokerages deduct it explicitly on the payout statement; others fold it into a lower nominal split. If your split looks generous but your net keeps coming in low, an unstated franchise fee is a common explanation — ask for the deduction to be itemized.

Under a flat-fee or 100% commission model, the agent keeps the entire commission and pays the brokerage a fixed amount instead — a monthly desk fee, a per-transaction fee, or both. There is no percentage split to calculate.

This model favors high producers and penalizes low ones. A desk fee of $1,000 a month is $12,000 a year whether the agent closes thirty deals or three, so the break-even point against a conventional split is worth calculating before switching. Run the same deal both ways in this calculator to see where the lines cross.

On a team, a second split happens after the brokerage takes its share. The team lead typically keeps 25% to 50% of the agent's side in exchange for supplying leads, marketing, administrative support, and often the transaction coordinator.

The sequence is brokerage first, team second. The brokerage takes its cut of the splittable base; whatever the agent receives is then divided with the team. That is why the team split in this calculator reduces the agent net but leaves the brokerage net unchanged — the team lead is paid by the agent, not by the brokerage.

Lead source usually drives the percentage. Team-generated leads carry the highest split to the lead; an agent's own sphere business often carries a much lower one or none at all. Check whether your agreement applies one rate to everything or varies it by source, since the effective annual difference is large.