Disposition Fee Calculator

Sponsor disposition fees are charged at sale — typically 0.5-1.5% of sale price on top of external broker commission. This calculator stacks disposition fee, broker commission, and legal costs to compute net sale proceeds before debt payoff.

Sale price

Disposition fee %

External broker commission %

Legal / closing costs

Total LP equity

Sponsor disposition fee

$140,000

External broker commission

$210,000

Total exit costs

$375,000

Net sale proceeds (pre-debt)

$13,625,000

Disposition fee as % of LP equity

3.50%

How the math works

Disposition fees compensate the sponsor for managing the sale process — buyer marketing, tour management, bid management, closing coordination. Typical: 0.5-1.5% of sale price in addition to external broker commission.

Institutional LPs often cap disposition fee below 1% or tie it to a performance threshold. Some LPAs waive disposition fee if an outside broker is engaged.

How to Use

Enter sale price.
Enter sponsor disposition fee (typical 0.5-1.5%).
Enter external broker commission (typical 1-2%).
Enter legal + closing costs.
Read disposition fee, total exit costs, and net proceeds.

Frequently Asked Questions

Why both sponsor and broker fees?

Broker fee pays the outside listing team. Disposition fee pays the sponsor for quarterbacking the sale and dealing with due diligence, bids, and closing coordination. In theory the sponsor earns their fee on process — not on price.