Commission Calculator

This calculator has two modes: Sales Commission for standard and tiered sales compensation, and Real Estate Commission for estimating agent fees on home sales.

Sales Commission mode:

• Enter the sale amount and your commission rate for a quick calculation.
• Toggle on Tiered Commission to model accelerator structures where the rate increases after hitting thresholds. This is common in sales roles where reps earn 5% on the first $5,000 of monthly revenue, 10% on the next $5,000, and 15% above $10,000.

Real Estate Commission mode:

• Enter the home sale price and each agent's commission rate separately.
• Following the August 2024 NAR settlement, commission rates are more negotiable. Listing agent commissions of 2-3% and buyer's agent commissions of 1-3% are now common.
• The net to seller shows what you receive before other closing costs like transfer taxes and title insurance.

Standard commission:

Commission = Sale Amount × Commission Rate

Tiered commission applies different rates to different bands of sales:

Commission = (Tier 1 sales × Rate 1)
           + (Tier 2 sales × Rate 2)
           + (Tier 3 sales × Rate 3)

Example: $12,000 in sales with tiers of 5%/10%/15% at $5,000/$10,000:

• Tier 1: $5,000 × 5% = $250
• Tier 2: $5,000 × 10% = $500
• Tier 3: $2,000 × 15% = $300
• Total: $1,050

Real estate example: $400,000 home, 2.5% listing agent + 2.5% buyer's agent = 5% total = $20,000 in commissions. Net to seller = $380,000 before other closing costs.