How to use the real estate commission calculator
There is no legal cap on real estate commissions in the United States. Korea sets brokerage fees by statute and local ordinance, with rates between roughly 0.3% and 0.7% of the transaction, but US commissions are purely a matter of contract between a seller and a broker. Rates in the 5% to 6% range became customary, yet nothing in federal or state law fixes that number.
Enter the sale price and the listing and buyer side rates written in your agreement, then enter an alternative total rate to see what a negotiated deal would cost. The calculator shows each side separately because since 2024 the two sides are far more often negotiated separately.
Legal basis (as of September 2026) — commission schedules set collectively would violate Sherman Act §1 (15 U.S.C. §1), so rates must be individually negotiated. The National Association of Realtors settlement that took effect in August 2024 removed offers of buyer broker compensation from MLS listings and requires a written buyer representation agreement before touring a home. State real estate licensing laws govern agency disclosure and how fees must be documented, but none of them set a maximum.
This calculator is for reference only and is not legal advice. Consult a licensed attorney or a real estate professional about your specific transaction.
Frequently Asked Questions
No. US commissions are set by contract, not by statute, and collectively fixed rate schedules would raise antitrust problems under Sherman Act §1. The customary 5% to 6% total is a market convention, not a legal ceiling.
It is negotiable. Offers of buyer broker compensation were removed from MLS listings in August 2024, so the buyer may pay their agent directly, ask the seller to contribute, or fold it into the purchase agreement.
Yes. Rates, the length of the listing agreement, and what happens if you cancel are all negotiable terms. Get any agreed rate in writing in the listing agreement.