Enter the price of a house and the commission percentage into the real estate commission calculator. The calculator will display the total commission earned.

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## Real Estate Commission Formula

The following formula is used to calculate the total commission earned on a house sale.

C = P * CM/100

- Where C is the commission total
- P is the house price
- CM is the commission %

## Real Estate Commission Definition

A real estate commission is a total monetary amount that a real estate agent earns on the sale of a real estate property

## How to calculate real estate commission?

How to calculate a real estate commission

**Determine the total house price**This will be the price of the house the buyer actually pays. This may not necessarily be the list price.

**Determine the % commission received**This will be a percentage of the total house price a seller or agent receives.

**Calculate the total commission amount**This will be equal to the total purchase price times the commission rate.

## FAQ

**What is a real estate commission?**

A real estate commission is a percentage of money earned by a real estate agent on a house sale.

**What is the average real estate commission?**

On average the real estate commission tends to range between 2.5-3% for both the buyer and seller agents.