1. What is a Commission Split?

A commission split is the percentage division of a real estate commission between the agent and their broker. This split varies by brokerage and agent experience level, typically ranging from 50/50 to 90/10 in favor of the agent.

2. How Does the Calculator Work?

The calculator uses the following simple formula:

Where:

• Total Commission — The full commission amount from the sale
• Split Percentage — The agent's percentage of the commission

Explanation: The broker's share is simply the total commission minus the agent's share.

3. Importance of Commission Splits

Details: Understanding commission splits is crucial for real estate agents to calculate their actual earnings from each transaction and to compare different brokerage opportunities.

4. Using the Calculator

Tips: Enter the total commission amount in USD and the agent's split percentage (without the % sign). For example, for a 70/30 split, enter 70.

5. Frequently Asked Questions (FAQ)

Q1: What is a typical commission split for new agents?
A: New agents often start with 50/50 splits, while experienced agents may negotiate 70/30 or better splits.

Q2: Are commission splits negotiable?
A: Yes, splits are often negotiable based on the agent's production, experience, and the brokerage's business model.

Q3: Do commission splits include franchise fees?
A: It depends on the brokerage. Some deduct franchise fees before the split, others after.

Q4: What's a 100% commission model?
A: In this model, agents keep 100% of commissions but pay monthly desk fees and other charges to the brokerage.

Q5: How do tiered splits work?
A: Some brokerages offer increasing splits as agents hit certain production thresholds (e.g., 60/40 up to $100k, then 70/30 above that).