Commissions are usually paid by the seller, but they are built into the price buyers pay. When that price is financed, the buyer also pays interest on the commission for 30 years – the “true cost” can be nearly double the headline fee.
How to use the True Cost of Real Estate Commission Calculator
- Property price
- Down payment
- Seller’s agent commission
- Buyer’s agent commission
- Term
- Interest rate
Results update as you type, and every field accepts the units shown in its menu.
How it works
Enter the property price, down payment, commission rates, loan term and interest rate.
Tips
- Get a written loan estimate and compare the APR, not just the interest rate.
- Include property tax, insurance, HOA fees and maintenance in your monthly budget.
- A larger down payment lowers the payment and can remove mortgage insurance.
- Rates change daily – use a current quote for the most accurate result.
Common mistakes to avoid
- Looking only at the monthly payment instead of the total cost of the loan.
- Forgetting closing costs and fees.
- Assuming home prices always rise.
Inputs explained
| Field | What to enter |
|---|---|
| Property price | Amount in your currency |
| Down payment | In % |
| Seller’s agent commission | In % |
| Buyer’s agent commission | In % |
| Term | Units: years, months |
| Interest rate | In % |
What each result means
- Commission amount = [Property price]×([Seller’s agent commission] + [Buyer’s agent commission])÷100
- Loan amount = [Property price]×(1 – [Down payment]÷100)
- Loan amount portion for commission = [Commission amount]×(1 – [Down payment]÷100)
- Monthly payment = pmt([Interest rate]÷1200, [Term], [Loan amount])
- Monthly payment portion for commission = pmt([Interest rate]÷1200, [Term], [Loan amount portion for commission])
- Total payments = [Monthly payment]×[Term]
- Apparent commission = ([Seller’s agent commission] + [Buyer’s agent commission])
- Real commission cost = [Commission amount]×[Down payment]÷100 + [Monthly payment portion for commission]×[Term]
- Real commission as a share of price = [Real commission cost]÷[Property price]×100
Example values
How the main result changes when Property price changes and everything else stays at the example values above:
| Property price | Real commission cost |
|---|---|
| 225,000 | 25,001.9 |
| 337,500 | 37,502.86 |
| 450,000 | 50,003.81 |
| 562,500 | 62,504.76 |
| 675,000 | 75,005.71 |
| 900,000 | 100,007.62 |
Formula
Commission = price × (seller + buyer agent rates)Share of the loan used for commission = commission × loan ÷ priceReal cost = financed commission share × total payments ÷ loan + down-payment shareWorked example
Inputs — Property price: $450,000; Down payment: 20 %; Seller's agent commission: 3 %; Buyer's agent commission: 2.5 %; Term: 30 years; Interest rate: 6.5 %.
Results — Commission amount = $24,750.00; Loan amount = $360,000.00; Loan amount portion for commission = $19,800.00; Monthly payment = $2,275.44; Monthly payment portion for commission = $125.15; Total payments = $819,160.16; Apparent commission = 5.5 %; Real commission cost = $50,003.81; Real commission as a share of price = 11.11 %.
Frequently asked questions
Who really pays the real estate commission?
It's paid from the seller's proceeds but built into the price the buyer pays.
Why does financing increase the cost?
You pay interest on the commission for the life of the loan.
Can commissions be negotiated?
Yes – especially since the 2024 NAR settlement.
What formula does the True Cost of Real Estate Commission Calculator use?
Commission = price × (seller + buyer agent rates).