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Commissions formula

Commission Split Formula

agent share = sale price × total rate × listing/selling split × agent's split with their broker

Commission Split

agent share = sale price × total rate × listing/selling split × agent's split with their broker
  • total rate — The full commission rate on the sale
  • listing/selling split — Share the agent's side of the transaction receives, e.g. 50%
  • agent's split — The agent's percentage of their brokerage's share

Worked example: Sale price $380,000, 6% total commission, split 50/50 between brokerages, agent keeps 70% of their side.

  1. $380,000 × 0.06 = $22,800 total
  2. $22,800 × 0.50 = $11,400 to the agent's brokerage
  3. $11,400 × 0.70 = $7,980 to the agent

$7,980 to the agent

Other Commissions formulas

Commission Split practice questions

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?

  1. $18,000
  2. $19,500
  3. $20,000
  4. $21,000
Show answer & explanation

$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?

  1. $6,000
  2. $8,000
  3. $10,000
  4. $12,000
Show answer & explanation

$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?

  1. $24,720
  2. $20,600
  3. $16,480
  4. $22,660
Show answer & explanation

$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

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