Updated October 2026. NAR’s settlement rules and September 2026 home prices checked this month.
To calculate a real estate commission, multiply the sale price by the rate: price × rate = commission. On a $500,000 sale, every 1% is $5,000, so 3% is $15,000 before the brokerage takes its share. On NAR’s September 2026 median price of $417,500, 1% is $4,175. Rates are not fixed by law, so plug in the rate you actually agree to.
Jump to: 💲 Formula · 📸 Quick table · 🤝 What the agent keeps · 🏠 Paying less · ❓ FAQ
Key takeaways
- Commission = sale price × rate. Every 1% on a $500,000 home is $5,000.
- Since August 17, 2024, offers of buyer-agent pay can’t be shown on the MLS, and buyers sign a written agreement before touring with an agent.
- All rates are negotiable. NAR’s own rules require buyer agreements to say fees are fully negotiable and not set by law.
- A flat fee MLS listing with Beycome costs $99 upfront, with $0 to Beycome at closing.
Want the math done for you? Our real estate commission calculator works it out from your price and rate. Below, we show how it works, so you can check any number an agent gives you.
How do you calculate a real estate agent’s commission?
It’s one line of math. Turn the rate into a decimal and multiply.
- Write the rate as a decimal: 3% is 0.03, 2.5% is 0.025.
- Multiply by the sale price: $400,000 × 0.03 = $12,000.
- If there are two agents, split it the way your agreements say.
- Subtract it, plus your other costs, from the price to see your net.
The commission comes out of the sale proceeds at closing. The title or escrow company pays the brokerages, not the agents directly. If you’re the seller, it shows up as a line on your settlement statement.
A flat fee works differently. It’s a set dollar amount, not a percentage, so it doesn’t grow with your price. A $99 fee is $99 on a $200,000 home and on a $2 million home.
Quick check: is the number right?
Move the decimal two places. On $350,000, 1% is $3,500. Then multiply by the rate. 2.5% is two and a half times $3,500, or $8,750. If an estimate doesn’t match this quick check, ask how it was figured.
How much is the commission at common rates?
These are examples, not standard rates. Use them to size the cost, then plug in your own numbers.
| Sale price | 1% | 2% | 2.5% | 3% | 5% | 6% |
|---|---|---|---|---|---|---|
| $300,000 | $3,000 | $6,000 | $7,500 | $9,000 | $15,000 | $18,000 |
| $417,500 | $4,175 | $8,350 | $10,438 | $12,525 | $20,875 | $25,050 |
| $500,000 | $5,000 | $10,000 | $12,500 | $15,000 | $25,000 | $30,000 |
| $750,000 | $7,500 | $15,000 | $18,750 | $22,500 | $37,500 | $45,000 |
| $1,000,000 | $10,000 | $20,000 | $25,000 | $30,000 | $50,000 | $60,000 |
The $417,500 row is NAR’s median existing-home price for September 2026. These percentages are only examples. Commissions are not set by law or by NAR rules, and they’re fully negotiable. Sellers choose whether to offer any buyer-agent compensation, and how much. Since August 17, 2024, those offers can’t be shown on the MLS.
How much does a realtor actually make on a $500,000 sale?
Less than the full commission. Say a listing agreement sets 3% on a $500,000 sale. That’s $15,000 to the listing brokerage. The brokerage then pays the agent a share under their own agreement. Brokerage splits and fees vary a lot, so the agent’s take-home can be a fraction of the headline number. Our explainer on how much commission a realtor makes walks through it.
If a buyer’s agent is involved, that agent is paid under the buyer’s written agreement. Since August 17, 2024, agents working with buyers must sign a written agreement before touring a home. It has to state the pay as an objective amount or rate, such as $0, a flat fee or a percent. The agent can’t be paid more than that amount from any source.
The National Association of Realtors explains these settlement changes in detail. For a closer look at who pays what, read who pays the realtor commission and what buyer’s agent commission is.
What else comes out of your sale proceeds?
Commission is the biggest line for most sellers, but not the only one. A good calculator subtracts these too.
- Your mortgage payoff, including interest to the payoff date.
- Transfer or deed taxes, which depend on your state and county.
- Title and settlement fees, if your contract says you pay them.
- Prorated property taxes and HOA dues.
- Any credits you agree to give the buyer, such as for repairs.
Our home sale calculator estimates your net with these costs in. The Consumer Financial Protection Bureau has plain guides to the closing documents, so you can check each line.
How do you calculate commission when there are two agents?
Work out each side on its own. They come from two different agreements now, not one shared number.
Say you sell for $400,000. Your listing agreement sets 2.5% for your listing brokerage: $400,000 × 0.025 = $10,000. The buyer’s agent has a written agreement with the buyer for 2%: $400,000 × 0.02 = $8,000. If you agree to cover the buyer’s agent too, your total is $18,000. If the buyer pays their own agent, your cost stays at $10,000.
Sell smarter
List your home on the MLS from $99
A flat fee instead of a percentage, and $0 to Beycome at closing. You stay in control of your sale.
Sell your home →Buy smarter
Get up to 2% back at closing
On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →Each of these numbers is only an example. You can offer a buyer’s agent nothing, a flat amount or a percent, or let the buyer handle it. Get any deal in writing, signed by you and that agent’s broker. Our guide on whether sellers pay the buyer’s agent covers the options.
Same sale, flat fee instead
Now list the same $400,000 home with a $99 flat fee MLS listing and keep the $8,000 buyer-agent example. Your listing cost drops from $10,000 to $99. That’s a $9,901 difference on the listing side alone, before you touch the buyer side.
How can you pay less than a percentage commission?
You have more choices than “6% or nothing.” Here are the common ones, from most help to least.
- Negotiate the rate with a full-service agent. It’s always allowed.
- Use a discount or reduced-commission brokerage.
- List on the MLS for a flat fee and handle showings and offers yourself.
- Sell fully by owner, with no MLS listing.
With Beycome’s flat fee MLS listing, Basic is $99 upfront and $0 to Beycome at closing. You get the MLS, syndication to Zillow and other sites, e-signature, unlimited changes and Artur, our AI assistant, for offer help. Concierge is $999 for a limited time (list price $1,399), with our experts negotiating while you stay in control of every decision.
Compare the numbers for your home with our agent vs Beycome calculator. For other options, see 1% commission agent alternatives and our guide to real estate commission percentages.
Frequently asked questions
How do you calculate real estate commission?
Multiply the sale price by the rate as a decimal. For example, $400,000 × 0.03 = $12,000. Rates are negotiable, so use the rate in your agreement.
How much does a realtor make on a $500,000 sale?
At an example rate of 3%, the brokerage gets $15,000. The agent keeps only their share after the brokerage split and fees, which vary by firm.
What is the commission on a $1 million house?
Each 1% is $10,000. At an example rate of 2.5%, that’s $25,000. A flat fee doesn’t change with price.
Is real estate commission set by law?
No. Commissions are not set by law or by NAR rules and are fully negotiable. Buyer agreements must say so.
Who pays the real estate commission?
The seller pays the listing broker under the listing agreement. The buyer’s agent is paid under the buyer’s written agreement, by the buyer, the seller or both, as negotiated.
Can I sell without paying a percentage commission?
Yes. A flat fee MLS listing, like Beycome Basic at $99, puts your home on the MLS without a listing commission.
What is 3% of $300,000?
$9,000. Multiply $300,000 by 0.03. At 5%, it would be $15,000. These are example rates only; commissions are negotiable.
Does a flat listing fee go up with my home’s price?
No. A flat fee is a set dollar amount. Beycome Basic is $99 whether your home sells for $200,000 or $2 million, with $0 to Beycome at closing.
Reviewed by Beycome Brokerage Realty LLC, a licensed real estate brokerage. Licenses are listed at beycome.com/faq/how-to/are-you-a-licensed-broker/.
All percentage figures on this page are examples, not typical or recommended rates. Commissions are not set by law or by NAR rules and are fully negotiable. Sellers choose whether to offer any compensation to a buyer’s agent, and how much; since August 17, 2024, those offers can’t be shown on the MLS.
Prices as of October 2026. “$0 at closing” means no Beycome fee at closing; taxes, title costs and any buyer-agent compensation you agree to still apply.
Median price is NAR’s September 2026 existing-home sales figure. Results are rounded to the dollar. This is general information, not legal or tax advice.
Sources
Disclosure & Disclaimer
Beycome provides real estate services through affiliated licensed brokerages and has a commercial interest in the services and business models discussed on this blog. Content reflects Beycome’s perspective and may promote our services; it should not be treated as independent or neutral reporting.
Articles are provided for general informational and educational purposes only, not as financial, tax, legal, or investment advice or a recommendation for your particular situation. Reading this blog does not create a brokerage, advisory, or other professional relationship.
Information, opinions, pricing, service descriptions, and comparisons reflect the sources and information available when an article was published or last updated and may change. Although we aim for accuracy, we do not guarantee that all content is complete, current, or applicable to your circumstances. Laws, market conditions, and service availability vary by location. Examples and estimated savings are illustrative, depend on stated assumptions, and do not guarantee individual results.
Verify relevant information directly and consult qualified professionals before making decisions. Beycome services are subject to applicable agreements, eligibility requirements, and state-specific terms.
