How much does a real estate agent actually keep?

Far less than the headline rate. A 6% commission is typically split between the listing and buying sides, and each agent then splits their half with a brokerage — often 70/30 for a newer agent. On a $120,000 sale that turns $7,200 of gross commission into about $2,520, before the agent’s own marketing and licensing costs.

What is an accelerator?

A higher commission rate on sales above quota, used to reward over-performance. It applies only to the amount above the line — hitting 120% of quota does not raise the rate on the first 100%. Plans that do apply it retroactively exist and are worth confirming in writing, because the difference is large.

What are on-target earnings?

Base salary plus the commission earned at exactly 100% of quota — the number an offer letter quotes. It is a forecast rather than a promise, and it is worth asking what share of the team actually hit quota last year. Where that share is under half, the OTE is describing an outcome most people did not reach.

Is commission taxed differently?

It is ordinary income, but employers often withhold on it at the flat supplemental rate — 22% federally on the first million in a year — rather than at your normal rate. That makes a commission cheque look more heavily taxed than it is; the difference comes back on the return.

Commission Calculator

With sales in the period 120000 usd, commission rate 6 percent, your share of the commission 50 percent, brokerage keeps 30 percent and 3 more fields, commission comes to $2,520.00 — commission to you. It is reached in 8 steps, the last of which is 3600 - 1080, and each one is printed on the page with its numbers filled in. The formula is the one published by US Small Business Administration, not an approximation fitted to it.

Commission on a sale with a split, a base salary and an accelerator above quota. Splits out the brokerage share and the effective rate.

Formula and sources checked 27 August 2026 · How we check

Sales in the period 120000, Commission rate 6, Your share of the commission 50, Brokerage keeps 30

$2,520.00

Commission to you for the example below. Editing a field recomputes the calculator below; this figure holds the answer the page was loaded with.

It is written into the HTML rather than drawn by a script, so a search engine reading this page without running JavaScript still finds an answer.

Sales in the periodusdCommission ratepercentYour share of the commissionpercentReal estate: the listing side is usually split with the buyer’s agent, then again with the brokerage.Brokerage keepspercentBase salary for the periodusdQuotausdLeave at zero if there is no accelerator.Rate above quotapercent

Commission to you

$2,520.00

Sales at the standard rate: $120,000
Sales above quota: $0
Gross commission: 120000 * 6 / 100 + 0 * 9 / 100$7,200
Your side of the commission: 7200 * 50 / 100$3,600
Brokerage keeps: 3600 * 30 / 100$1,080
Commission to you: 3600 - 1080$2,520
Total pay for the period: 2520 + 0$2,520
Your effective rate on the sale: 2520 / 120000 * 1002.1 %

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Worked example

A 6% commission on $120,000 is $7,200 — but half goes to the other side of the deal and the brokerage takes 30% of what is left, so the agent receives $2,520. That is an effective 2.1% of the sale, which is the number worth quoting.

How to work it out yourself

1.Enter the gross commission rate on the sale, then the splits in order: the co-operating split first, then whatever the brokerage takes of your side.
2.Add a quota only if your plan accelerates above it. The accelerator applies to sales past the quota, not retroactively to all of them.
3.Read the effective rate. It is what you actually earn as a share of what you sold, and it is usually a third of the headline rate.

The formula

Sales at the standard rate
Sales above quota
Gross commission120000 * 6 / 100 + 0 * 9 / 100
Your side of the commission7200 * 50 / 100
Brokerage keeps3600 * 30 / 100
Commission to you3600 - 1080
Total pay for the period2520 + 0
Your effective rate on the sale2520 / 120000 * 100

Source: US Small Business Administration — calculate your startup costs and pricing

Questions people actually ask

How much does a real estate agent actually keep?: Far less than the headline rate. A 6% commission is typically split between the listing and buying sides, and each agent then splits their half with a brokerage — often 70/30 for a newer agent. On a $120,000 sale that turns $7,200 of gross commission into about $2,520, before the agent’s own marketing and licensing costs.
What is an accelerator?: A higher commission rate on sales above quota, used to reward over-performance. It applies only to the amount above the line — hitting 120% of quota does not raise the rate on the first 100%. Plans that do apply it retroactively exist and are worth confirming in writing, because the difference is large.
What are on-target earnings?: Base salary plus the commission earned at exactly 100% of quota — the number an offer letter quotes. It is a forecast rather than a promise, and it is worth asking what share of the team actually hit quota last year. Where that share is under half, the OTE is describing an outcome most people did not reach.
Is commission taxed differently?: It is ordinary income, but employers often withhold on it at the flat supplemental rate — 22% federally on the first million in a year — rather than at your normal rate. That makes a commission cheque look more heavily taxed than it is; the difference comes back on the return.

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