Real Estate Commission Calculator

How real estate commission works in 2025

Real estate commission in the United States has historically run 5–6% of the sale price, split roughly 50/50 between the listing agent and the buyer's agent. That structure changed in August 2024 after the National Association of Realtors (NAR) class-action settlement.

Post-NAR settlement (August 2024)

Two big changes for sellers:

1. Buyer-side commission is no longer required on the MLS. Sellers and listing agents can choose whether to advertise buyer agent compensation through the MLS (and most listings now don't).
2. Buyer agents must have a written agreement before showing homes. Buyers now sign a buyer-broker agreement upfront that specifies how the buyer agent will be paid — by the seller (via concession), by the listing agent (compensation offered separately), or by the buyer directly.

Practical effect: total commissions are more negotiable than they were before August 2024, and the average national commission rate has dropped from ~5.5% to ~5.4% in early MLS data. On a $500,000 home, every 0.5% you negotiate down saves $2,500.

Where commission goes

The total commission isn't kept entirely by the agent. Here's a typical breakdown of what happens to a 3% listing-side commission:

• Brokerage split — 25–50% of commission goes to the brokerage as a desk fee or split.
• Marketing budget — listing agents typically spend 5–15% of their commission on photography, staging, MLS, signage, and online ads.
• Self-employment tax — 15.3% on the agent's net.
• Income tax — federal + state.

This is why even at 6% gross, agents typically net 1–2% of the sale price after their costs.

Related calculators

• Seller's Net Sheet — full breakdown including all closing costs and mortgage payoff.
• Home Sale Proceeds (after-tax) — adds federal capital gains tax modeling.