A real estate agent commission split passes through multiple layers before reaching your pocket — listing/buyer split, broker split, team lead cut, franchise royalty, transaction fee, and E&O insurance. This calculator shows every deduction layer and your true net commission.
Transaction Details
Splits & Fees
Keller Williams: 6% (capped ~$3,000/yr), RE/MAX: varies
Enter your transaction details and click Calculate Commission
How Real Estate Agent Commission Splits Work
Understanding your commission split structure is essential for real estate agent financial planning. A $450,000 sale at 5.5% generates $24,750 total commission — but by the time it reaches your bank account, multiple parties have taken their share.
Layer 1: Listing vs. Buyer's Agent Split
The total commission is first split between the listing and buyer's agent sides. Traditionally 50/50, some listing brokerages now offer 55/45 or 60/40 to incentivize buyer agent cooperation. Post-2024 NAR settlement, buyer's agent compensation is negotiated separately and may be paid directly by buyers.
Layer 2: Broker Split
Your side of the commission is then split with your broker. New agents typically start at 50/50 or 60/40 (agent keeps 60%). Experienced agents earn 70/30, 80/20, or better. Cap-based brokerages like Keller Williams let agents keep 100% after paying an annual cap (typically $18,000-$24,000).
Layer 3: Team Lead Split (if applicable)
Agents on teams pay an additional split to their team lead, typically 30-50% of the agent's gross. In return, the team provides leads, marketing, and admin support. Team splits effectively cut your per-deal net — but the lead flow usually results in higher total volume.
Franchise Fees and Per-Transaction Costs
Franchise brands charge royalty fees (6-8% of gross agent commission, usually capped annually). Transaction fees and E&O insurance are flat per-deal deductions. At $450 per transaction, these costs add up — 20 deals per year means $9,000 in flat fees before income taxes.
NAR Settlement Changes (2024)
Following the 2024 NAR settlement, buyer's agent commissions can no longer be offered through MLS. Buyers now negotiate their agent's compensation directly. This has shifted some deals to fixed-fee or reduced buyer-side commissions. Input your actual negotiated commission to see your real net.
FAQ
Is this real estate commission split calculator free?
Yes, completely free with no signup required. All calculations run locally in your browser. No financial data is transmitted to any server.
What is a typical broker commission split for new agents?
New agents at traditional brokerages typically start at 50/50 or 60/40 splits (agent keeps 50-60%). As they close more transactions, many brokerages offer 70/30 or 80/20 splits. Some brokerages use a cap system (like Keller Williams) where agents pay a set annual cap amount, then keep 100% of commissions after reaching it.
What is a franchise fee in real estate?
Franchise fees (also called royalty fees) are charged by national franchise brands like Keller Williams (6% up to $3,000/year), RE/MAX (varies by office, often $1,000-$2,000/year), Century 21, and others. The fee is deducted before the agent's portion is calculated or taken as a percentage of gross commission.
What is an E&O insurance fee?
Errors & Omissions (E&O) insurance protects real estate agents from liability claims. Most brokerages charge $25-$75 per transaction to cover the agent's share of the brokerage's E&O policy. Some agents purchase their own E&O insurance, which ranges from $500-$2,000 per year depending on volume.
What is a transaction fee in real estate?
Transaction fees (also called administration fees or file fees) are flat charges per closed transaction that cover administrative processing, document storage, and compliance review. They typically range from $200-$500 per transaction and are charged in addition to the percentage commission split.
Do I owe self-employment tax on my commission?
Yes, as an independent contractor (1099 worker), you owe self-employment tax of 15.3% on net earnings up to the Social Security wage base ($176,100 in 2026), plus 2.9% Medicare tax above that. You can deduct half of SE tax from income tax. This calculator shows gross commission splits — run your net through a self-employment tax calculator for the full picture.