Commission Calculator — Flat, Tiered & Split Commission
Calculate sales or real estate commission at a flat or tiered rate, see your take-home after a brokerage split and fees, and find the sales volume you need to reach an income goal.
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Commission at Different Sale Amounts
Same rates, split and fees applied to other sale sizes.
| Sale Amount | Gross Commission | Effective Rate | Your Take-Home |
|---|
How this calculator works
- Flat rate: gross commission = sale amount × rate.
- Tiered (marginal): each rate applies only to the part of the sale within its band, like tax brackets — so crossing a threshold never lowers your total.
- Take-home = gross commission × your split − fees per deal. The brokerage or house keeps the rest of the gross.
- Sales volume for a goal = income goal ÷ (take-home per dollar of sales), using the current sale's take-home rate.
By Suhaib Hassan · Formula verified 28 Sep 2026 · How CalculatePilot verifies formulas →
A worked example
A $400,000 sale at a flat 3% gives $12,000 of gross commission. On a 70/30 split, you keep $8,400 and the brokerage keeps $3,600. With the tiered example (5% to $100,000, 3% to $300,000, 2% above), the same sale earns $5,000 + $6,000 + $2,000 = $13,000 gross — an effective rate of 3.25%.
How commission splits and rates work
In real estate and many sales roles, the commission on a deal is split between the individual and their brokerage or employer by a pre-agreed percentage — a "70/30 split" means you keep 70%. Splits often improve as you hit production milestones, and some firms use caps or flat desk fees instead. Real estate commissions are negotiable; since August 2024, National Association of REALTORS® rules no longer allow offers of compensation to buyers' agents on the MLS, and buyers sign written agreements with their agents.
Sources
Take-home at a flat 3% commission, by split
Before any per-deal fees or taxes.
| Sale price | Gross commission | 70/30 split | 80/20 split | 90/10 split |
|---|---|---|---|---|
| $200,000 | $6,000 | $4,200 | $4,800 | $5,400 |
| $400,000 | $12,000 | $8,400 | $9,600 | $10,800 |
| $600,000 | $18,000 | $12,600 | $14,400 | $16,200 |
Common commission calculation mistakes
- Applying a tiered rate to the whole sale. In a marginal structure each rate applies only to the part of the sale inside its band.
- Forgetting per-deal fees. Transaction, desk or E&O fees come off your take-home and can matter on smaller sales.
- Treating take-home as income after tax. Commission is taxable. Independent agents also owe self-employment tax and usually need to set money aside.
- Comparing splits without caps. A lower split with a cap can pay more than a higher split with no cap once you pass the cap.
Frequently asked questions
Is a 70/30 commission split typical?
Split arrangements vary widely by brokerage, industry and experience — 70/30 is a commonly cited example, but actual splits range broadly and are often negotiable, especially as your production increases.
Does this calculator handle tiered commission structures?
Yes. Choose "Tiered" and set up to three bands. Each rate applies only to the portion of the sale inside its band, the way marginal tax brackets work.
How do I calculate commission on a sale?
Multiply the sale amount by the commission rate — for example, $50,000 × 5% = $2,500. Then multiply by your split percentage and subtract any per-deal fees to get your take-home.
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