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Real estate & rental

Real Estate Agent Split Comparison Calculator

Compares split arrangements side by side at a given production level.

Your numbers

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Result

Advantage to the better option $285
Net with brokerage A $144,300
Net with brokerage B $144,015
Transactions where they are equal 3
Better option Brokerage A
Brokerage A is better by $285 a year at 14 transactions. The two are roughly equal at about 3 deals, so the answer changes with your volume.

Fee schedules are only half the decision. Training, lead provision, brand, support staff and the quality of the managing broker all have value that does not appear in a spreadsheet, and for a new agent they usually matter more than the split.

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How the calculation works

Each arrangement's total annual cost at the same production: the split retained, plus per-transaction fees, plus monthly charges, with any cap applied. Comparing at a single production figure is what makes the arrangements comparable, since each is designed to look best at a particular volume.

What moves the number

  • Production level, which determines the ranking.
  • Cap thresholds and whether they are reached.
  • Fixed monthly charges against per-transaction ones.
  • Average compensation per transaction.

Where this one goes wrong

Run the comparison at several production levels rather than one, because the crossover point between two arrangements is the information you actually want: knowing the volume at which a capped model overtakes a straight split tells you whether to move now or later. Comparing at a single optimistic figure answers a question about a year you may not have.

Before you quote

  • Compare at several production levels, not one.
  • Identify the crossover volume between arrangements.
  • Use a realistic production figure as the base case.

Questions

About this calculator

What should a split comparison actually produce?

The crossover production level between arrangements, since that tells you whether to move now or later. A comparison at a single figure answers a question about one hypothetical year rather than about the decision in front of you.

Why does the ranking change with volume?

Because each model is designed to suit a particular volume: fixed monthly charges punish low production, while a cap rewards high production. Running the comparison at several levels shows where each becomes the better arrangement.

Which production figure should be the base case?

A realistic one, ideally your actual last year rather than a target. Comparing at an optimistic figure favours the arrangement that suits high volume, which is a poor basis for a decision if the volume does not arrive.

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The formula

net = gross commission - the lower of split cost or cap - annual fees, compared across both

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How to use this calculator

  1. Transactions per year. Enter your own figure; the page starts at 14.
  2. Your side commission per deal ($). Enter your own figure; the page starts at $11,550.
  3. Brokerage A, your share (%). Enter your own figure; the page starts at 70%.
  4. Brokerage A annual cap ($). Enter your own figure; the page starts at $16,000.
  5. Brokerage A annual fees ($). Enter your own figure; the page starts at $1,400.
  6. Brokerage B, your share (%). Enter your own figure; the page starts at 95%.

The result updates as you type, so you can try a figure, see what it does to advantage to the better option, and change it back. Nothing you enter is sent anywhere or saved.

A worked example

These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.

What goes in

InputValue
Transactions per year14
Your side commission per deal$11,550
Brokerage A, your share70%
Brokerage A annual cap$16,000
Brokerage A annual fees$1,400
Brokerage B, your share95%
Brokerage B annual cap$0
Brokerage B annual fees$9,600

What comes out

ResultValue
Advantage to the better option main result$285
Net with brokerage A$144,300
Net with brokerage B$144,015
Transactions where they are equal3
Better optionBrokerage A

Brokerage A is better by $285 a year at 14 transactions. The two are roughly equal at about 3 deals, so the answer changes with your volume.

How sensitive the answer is

Holding everything else steady and changing only your side commission per deal, this is what happens to advantage to the better option. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.

Your side commission per deal ($)Advantage to the better option
$5,775 $3,758
$8,663 $1,736
$11,550 example above $285
$17,325 $4,328
$23,100 $8,370

Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.

What each figure means

Transactions per year
A number, between 0 and 500, starting at 14.
Your side commission per deal ($)
A money amount, starting at $11,550.
Brokerage A, your share (%)
A percentage, between 0 and 100, starting at 70%.
Brokerage A annual cap ($)
A money amount, starting at $16,000.
Brokerage A annual fees ($)
A money amount, starting at $1,400.
Brokerage B, your share (%)
A percentage, between 0 and 100, starting at 95%.
Brokerage B annual cap ($)
A money amount, starting at $0.
Brokerage B annual fees ($)
A money amount, starting at $9,600.

What the results tell you

ResultWhat it is
Advantage to the better optionThe headline result. A money figure.
Net with brokerage AA money figure.
Net with brokerage BA money figure.
Transactions where they are equalA number.
Better optionA category or planning selection, rather than a measured quantity.

What is not in this number

Property figures here exclude the costs that decide whether a deal works: vacancy, maintenance, management, capital expenditure and the transaction costs at both ends. A return that looks strong before those frequently does not survive them.

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.