Real estate & rental
Real Estate Agent Transaction Cost Calculator
Works what a transaction costs an agent, where the net is well below the gross.
Result
The order matters and it is set by your brokerage agreement rather than by convention. A franchise fee taken off the top before the split costs you less than one taken from your share afterwards, and agreements differ on this, so check yours rather than assuming. The cap model is shown because it changes the economics through the year: closings before the cap are far less profitable than closings after it, which is why a strong first half changes what a later deal is worth. A desk fee is treated as one month of overhead against this closing rather than a per transaction charge, since that is what it is; if you close less than one deal a month it is costing you more than shown.
Get a Free Business AuditHow the calculation works
Gross compensation on the transaction less the brokerage split, less any franchise or transaction fees, less the direct costs of the transaction such as marketing, photography, staging contributions and mileage, giving the net before income and self-employment tax. The net is substantially less than the gross and the gap surprises agents who budget from the headline figure.
What moves the number
- The brokerage split and any cap arrangement.
- Franchise, transaction and administrative fees.
- Direct costs on that transaction.
- Self-employment and income tax, which follow later.
Where this one goes wrong
Agents are generally independent contractors with no withholding, which means the net calculated here is still before tax and a share of it has to be set aside for quarterly payments. Budgeting from the net as though it were take-home is the most common financial mistake in the business. Direct transaction costs are the other item worth tracking per deal rather than annually, since a transaction that required heavy marketing can net far less than a comparable one that did not.
Before you quote
- Set aside tax from each transaction rather than at year end.
- Track direct costs per transaction, not only annually.
- Include franchise and transaction fees, not just the split.
Questions
About this calculator
Why is my net so much less than the gross?
The brokerage split, franchise and transaction fees, and the direct costs of marketing that deal all come out before anything reaches you. Agents who budget from the headline figure consistently find the gap larger than expected.
Is the net figure my take-home?
No, it is still before income and self-employment tax, and as an independent contractor nothing has been withheld. Setting aside a share of every transaction for quarterly payments is what prevents an unpleasant spring.
Should transaction costs be tracked per deal?
Yes, because they vary enormously. A listing that required extensive marketing, photography and staging contributions nets far less than a comparable one that did not, and an annual total hides which kinds of transactions are actually worth taking.
The formula
gross = price x total commission x your side's share; net = gross - referral - franchise fee - brokerage split - fees - marketing - tax set aside
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How to use this calculator
- Sale price ($). Enter your own figure; the page starts at $380,000.
- Total commission on the sale (%). Enter your own figure; the page starts at 5%.
- Your side's share of that commission (%). Usually half where the other side is separately represented.
- Brokerage arrangement. Enter your own figure; the page starts at A percentage split with the brokerage.
- Brokerage's share (%). Enter your own figure; the page starts at 30%.
- Franchise fee (%). Often charged on your gross commission before the split.
The result updates as you type, so you can try a figure, see what it does to you keep, after tax set aside, 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
| Input | Value |
|---|---|
| Sale price | $380,000 |
| Total commission on the sale | 5% |
| Your side's share of that commission | 50% |
| Brokerage arrangement | A percentage split with the brokerage |
| Brokerage's share | 30% |
| Franchise fee | 6% |
| Brokerage transaction fee | $395 |
| Errors and omissions per transaction | $150 |
| Marketing and staging you paid for | $800 |
| Referral fee you owe out | $0 |
| Self-employment and income tax you set aside | 30% |
What comes out
| Result | Value |
|---|---|
| You keep, after tax set aside main result | $3,434 |
| Your gross commission | $9,500 |
| Before tax set aside | $4,906 |
| To the brokerage | $2,679 |
| Franchise fee | $570 |
| Fees and marketing | $1,345 |
| Tax set aside | $1,472 |
| Share of gross commission you keep | 36.1% |
A 380,000 sale produces $9,500 of gross commission for you, and you keep $3,434 of it, which is 36.1%. The brokerage takes $2,679, the franchise fee takes $570, fees and marketing take $1,345, and $1,472 goes aside for tax.
How sensitive the answer is
Holding everything else steady and changing only sale price, this is what happens to you keep, after tax set aside. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Sale price ($) | You keep, after tax set aside |
|---|---|
| $190,000 | $1,246 |
| $285,000 | $2,340 |
| $380,000 example above | $3,434 |
| $570,000 | $5,622 |
| $760,000 | $7,810 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Sale price ($)
- A money amount, between 0 and 50000000, starting at $380,000.
- Total commission on the sale (%)
- A percentage, between 0 and 15, starting at 5%.
- Your side's share of that commission (%)
- Usually half where the other side is separately represented.
- Brokerage arrangement
- Choose from A percentage split with the brokerage, A split until an annual cap, then full commission, A desk fee, keeping all the commission.
- Brokerage's share (%)
- A percentage, between 0 and 90, starting at 30%.
- Franchise fee (%)
- Often charged on your gross commission before the split.
- Brokerage transaction fee ($)
- A money amount, between 0 and 5000, starting at $395.
- Errors and omissions per transaction ($)
- A money amount, between 0 and 5000, starting at $150.
- Marketing and staging you paid for ($)
- A money amount, between 0 and 50000, starting at $800.
- Referral fee you owe out ($)
- A money amount, between 0 and 100000, starting at $0.
- Self-employment and income tax you set aside (%)
- A percentage, between 0 and 60, starting at 30%.
What the results tell you
| Result | What it is |
|---|---|
| You keep, after tax set aside | The headline result. A money figure. |
| Your gross commission | A money figure. |
| Before tax set aside | A money figure. |
| To the brokerage | A money figure. |
| Franchise fee | A money figure. |
| Fees and marketing | A money figure. |
| Tax set aside | A money figure. |
| Share of gross commission you keep | A percentage. |
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.
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