Freehold
Commissions formula
commission = sale price × commission rate
commission = sale price × commission rate
Worked example: A home sells for $420,000 at a 5.5% commission rate.
$23,100 total commission
Every Freehold question shows why the right answer is right — and cites its source.
A home sells for $350,000 with a 6% commission rate. What is the total commission?
$21,000 — Multiply the sale price by the commission rate: $350,000 × 0.06 = $21,000. Commission is calculated on the full sale price unless the agreement states otherwise.
Source: PSI National Real Estate Exam Content Outline §11 Real Estate Calculations
A property sells for $400,000 with a 5% commission split equally between two brokerages. The selling agent receives 60% of their brokerage's share. How much does the selling agent earn?
$6,000 — Total commission is $400,000 × 0.05 = $20,000. Each brokerage receives $10,000, and the agent's 60% share of $10,000 equals $6,000.
Source: PSI National Real Estate Exam Content Outline §11 Real Estate Calculations
A home sells for $412,000 with a 5% commission rate. What is the total commission?
$20,600 — Commission equals the sale price times the commission rate: $412,000 × 5% = $20,600.
Source: PSI National Real Estate Exam Content Outline §11 Real Estate Calculations
All 14 formulas in one place: Real estate math reference