The Commission Formula
Commission = Sale Price × Commission Rate
Net Proceeds = Sale Price − Commission − Remaining Mortgage Payoff
How Commission Is Typically Structured
Real estate commission is traditionally negotiated between the seller and their listing agent, and has historically often been split between the listing agent and the buyer's agent (commonly around 2.5-3% each, though this varies and rates are negotiable and can differ significantly by market and brokerage).
Commission Is Negotiable
Unlike a fixed fee, real estate commission rates are legally negotiable in the US, and recent industry changes have increased transparency and flexibility around how buyer's agent compensation is structured — always discuss and confirm the exact rate with your agent upfront.
Other Selling Costs to Consider
Beyond commission, sellers typically also pay for title insurance, transfer taxes, and any agreed-upon repairs or concessions — this calculator estimates commission and mortgage payoff only, not these additional potential costs.