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Commission Split Calculator

Agents split gross commission with their broker, then pay transaction fees, E&O insurance, and sometimes a desk fee. What hits the agent's bank account is much less than the 3% on the contract. This calculator lines up a typical split structure (50/50 → 90/10 → 100% cap) so agents can see real take-home per transaction.

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Net to agent

$9,816

Take-home % of gross

67.7%

Broker takes

$4,350

E&O per deal

$39

Desk fee per deal

$0

How the math works

At $14,500 gross commission on a 70/30 split: broker keeps $4,350, agent gets $10,150 before fees. After $295 transaction, $40 E&O pro-rata (annual $550/14 deals), and $0 desk: agent net $9,815 — 67.7% of gross.

Cap models shine at high production: on 25 deals/yr with the same average commission, you'd hit the $18K cap by deal 12 and keep 100% of deals 13-25 minus just transaction fees. Rough break-even between 80/20 and cap model is 10-14 deals/year depending on cap size.

How to Use

  1. Enter commission earned on one transaction.
  2. Pick split structure: 50/50 (new agent), 70/30 (mid), 80/20, 90/10 (top producer), or 100% / cap model (eXp, Keller).
  3. Add transaction fee, E&O insurance, and desk fee.
  4. See net to agent, effective take-home %, and per-deal profit.

Frequently Asked Questions

Which split structure is best?

Depends on production. New agents: 50/50 or 60/40 — broker provides training/leads/marketing. Mid producers (6-12 deals/year): 70/30 or 80/20. Top producers (20+ deals): 90/10 or 100% with a cap ($15K-$25K/year to the broker, then 100% thereafter). Top producers should pencil both models.

What's a cap model?

Common at eXp, Keller Williams, REAL: agent pays broker a set % until they hit an annual cap (e.g., 20% until $25K paid to broker), then keeps 100% of remaining commissions. Great for high producers; poor for low producers who never hit the cap.

Transaction fees — how big?

$195-$495 per transaction at major brokerages. Some add a 'KWRI fee' or tech fee of 6-8% on top. Discount brokerages sometimes waive these in exchange for lower commission splits. Read the full fee disclosure before joining.

Is E&O insurance optional?

No — required by almost every brokerage (mandatory in many states). $350-$700/year is typical. Some brokerages bundle it into transaction fees; others bill annually. Don't try to practice without it; one claim can end your career without coverage.

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