A sale commission flows from gross to the brokerages, then splits with the agent. Layer the percentages: total commission, each side’s share, then the agent’s split of their side.
The example
$400k sale, 6% total, 50/50 sides, 70% agent.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | Sale price | 400000 |
| 3 | Agent take | → $8,400 |
The formula
The formula:
How it works
How it works:
- Total commission = price × commission rate (e.g. 6%).
- Each side (listing and buyer) typically takes half — multiply by the side share.
- The agent then splits their side with the brokerage (e.g. 70/30) — multiply by the agent split.
- Chain the percentages, or compute each stage in its own cell for a clear breakdown.
Caps and tiers complicate it: many brokerages raise the agent split after a yearly cap is met, or use a flat fee per transaction. For those, a small lookup table of split tiers — or an IF on year-to-date volume — replaces the single split percentage.
Try it: interactive demo
Price, total commission, side share, agent split.
Variations
Total commission
Gross fee:
One side
Listing or buy side:
Brokerage share
What the broker keeps:
Pitfalls & errors
Rates as decimals. 6% is 0.06 — mind whether cells store 6 or 0.06.
Caps and fees. Flat transaction fees or split caps change the math — model them separately.
Pre-tax, pre-expenses. This is gross to the agent, before their own costs.
Practice workbook
Frequently asked questions
How do I calculate a real estate commission split in Excel?
How do I get the total commission?
How do I handle commission caps?
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