What this calculator does
Real estate commission is what an agent earns for selling a property, calculated as the sale price multiplied by the agreed commission rate. There is no single fixed commission rate: it is set individually between the seller and the agent, and varies by location, property value, agency and how competitive the local market is for listings.
Because the rate is negotiated rather than fixed, this calculator asks for the rate as an input rather than assuming one. Real estate commission rates commonly fall somewhere in the low single digits as a percentage of sale price in many markets, but treat that as a rough sense of scale, not a figure to plug in without checking what your own agent or agency actually charges.
The formula
Multiply the sale price by the commission rate, expressed as a percentage, to get the commission owed. The amount the seller keeps before other selling costs is the sale price minus that commission.
| Term | Meaning |
|---|---|
| Sale price | The final agreed price the property sold for. |
| Commission rate | The percentage of the sale price the agent is owed, as agreed in the agency agreement. |
| Commission | Sale price multiplied by the commission rate. |
The inputs explained
| Field | What to enter |
|---|---|
| Sale price ($) | The property’s final sale price. |
| Agreed commission rate (%) | The commission rate agreed with the agent, as a percentage. This varies by agent and location, so check your own agency agreement rather than assuming a standard figure. |
When to use it
Budgeting for the cost of selling
Commission is usually the largest single cost of selling a property, so estimating it early alongside other selling costs (marketing, conveyancing, any repairs) gives a realistic picture of net proceeds.
Comparing quotes from different agents
Agents can quote different rates for the same property, and running each quoted rate against the expected sale price puts the offers on a like-for-like dollar basis rather than comparing bare percentages.
Negotiating a commission rate
Seeing the dollar difference between two candidate rates, rather than just the percentage gap, makes clear what is actually being negotiated on a given sale price.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How much commission is owed at different sale prices?
The same 2% rate, applied to a range of sale prices.
| Sale price | Commission | Seller keeps (before other costs) |
|---|---|---|
| $400,000 | $8,000.00 | $392,000.00 |
| $550,000 | $11,000.00 | $539,000.00 |
| $700,000 | $14,000.00 | $686,000.00 |
| $850,000 | $17,000.00 | $833,000.00 |
| $1,000,000 | $20,000.00 | $980,000.00 |
| $1,500,000 | $30,000.00 | $1,470,000.00 |
Questions
Is there a standard real estate commission rate?
No single standard rate applies everywhere. Rates are individually negotiated between seller and agent and vary by location, property value and agency, so always confirm the exact rate in writing before listing rather than assuming a typical figure applies.
Who pays the commission, the buyer or the seller?
In most residential sales the seller pays the agent’s commission out of the sale proceeds, though the exact arrangement can vary by market and by the type of agency agreement signed.
Does commission include GST or other taxes?
That depends on the agency agreement and local tax rules. Check whether the quoted rate is inclusive or exclusive of any applicable tax before comparing quotes from different agents.
Are there other selling costs beyond commission?
Usually yes: marketing and advertising costs, conveyancing or legal fees, and sometimes styling or repair costs are separate from commission and should be budgeted for alongside it.
For the mortgage side of a property transaction, see the mortgage repayment calculator.