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Real estate & rental

Real Estate Agent Annual Income Calculator

Annual gross commission income and what survives to the bank account.

Your numbers

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Result

Net income after tax $77,238
Gross commission income $173,250
After the brokerage split $121,275
Total transactions 15
Average per month $6,436
GCI of $173,250 across 15 transactions becomes $77,238 after the split, expenses and tax, which averages $6,436 a month. The monthly figure is notional: commission arrives in lumps, not instalments.

Not tax advice. Deduction rules, mileage rates and self-employment tax treatment change annually and depend on your entity, your state and the rest of your return. Use this to plan a set-aside, and confirm the actual figures with an accountant before filing anything. The monthly average is arithmetic rather than reality. Commission income is lumpy and seasonal, and a working capital buffer covering several slow months is not optional in this business.

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Questions

About this calculator

What is GCI?

Gross commission income: the total commission credited to you before the brokerage split, expenses or tax. It is the figure agents quote to each other and roughly double what they keep.

How much should I hold in reserve?

Enough for three to six months of personal and business costs. Closings slip, deals fall through, and markets go quiet with no notice.

The formula

GCI = transactions x price x commission rate; net = (GCI x split - expenses) x (1 - tax)

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Estimating is the easy part

The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.