True Cost of Real Estate Commission Calculator

Your details

The agreed purchase price of the home.
The cash you pay upfront. The rest is financed as your mortgage.
The combined seller and buyer agent commission as a percentage of the home price. Traditionally 5-6%, though this is negotiable after the 2024 NAR settlement.
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The portion of the total commission paid to the seller's (listing) agent.
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Your annual mortgage interest rate (APR). Check current rates from your lender.
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The length of your mortgage. Most buyers choose 15 or 30 years.
Currency
True commission cost
$46,554

Total you pay for the commission including interest over the full loan term

Upfront commission$22,000
Commission portion financed$17,600
Interest paid on commission$24,554
Effective commission rate11.64%
Monthly payment attributable to commission$117.09
Buyer agent commission$11,000
Listing agent commission$11,000
Commission %5.5
Other %94.5

Your true commission cost is $46,554, which exceeds the listed fee.

  • The face-value commission is 5.5%, but financing it at mortgage rates over 30 years raises the effective rate to 11.64% of the home price.
  • You pay an extra $24,554 in interest alone just to finance the commission portion of your loan.
  • The true commission cost is $24,554 (112%) more than the sticker price of the commission.
  • Negotiating even 1% off the commission rate can save tens of thousands of dollars over a 30-year mortgage.

Next stepSince the NAR 2024 settlement, buyers now negotiate their agent fee directly. Ask your listing agent for a written breakdown of how the commission is split, and compare at least two agents before signing.

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