Financial Analysis and Real Estate Math

Commission Calculations

COMMISSION = SALE PRICE × COMMISSION RATE. Example: Home sells for $600,000 at 6% commission. Total commission = $600,000 × 0.06 = $36,000. If split 50/50 between listing and selling broker, each gets $18,000. If the salesperson gets 60% of their brokerage's portion, salesperson receives $18,000 × 0.60 = $10,800.