Exam math
Commission and split calculator
Move from sale price to gross compensation, the amount allocated to one side, the brokerage split and any flat fee. Equal sides are a common exam assumption, not a rule, so the side allocation stays visible and editable.
Your figures
Always negotiable. It is never set by law, by an association or by an MLS, and any suggestion of a standard rate is a price-fixing problem.
50% is a common exam assumption when the problem divides compensation equally. Real agreements can allocate it differently, so use the percentage stated.
Your share of the side before any transaction fee.
A flat fee some brokerages take per transaction on top of the split.
Your net
$12,355.00
From $42,500.00 gross compensation, after a 50% side allocation, your 60% brokerage split and the flat fee entered.
Includes the brokerage share and flat fee entered
Complete results, no email, no account. Calculation methods are checked with regression cases. Inspect your inputs, units and the stated assumptions. How we verify
How this is calculated
Gross commission is the sale price multiplied by the total rate. If a problem divides the gross equally between two sides, one side is 50%. A real compensation agreement can allocate another percentage, so use the figure the question or agreement gives. If the same brokerage handles both sides, the full gross enters that brokerage before its internal splits and fees.
Your split is a percentage of that side, and it is your share before any flat fee. A transaction or desk fee comes off after the split, which is why a 60% split with a $395 fee is not the same as a 60% split without one.
The point the exam tests is the order. First find the gross, then the side, then the agent's share of that side, then subtract a stated flat fee. Applying the agent split to the full gross when the problem gives only one side overstates the result.
The legal point behind all of it: commission is always negotiable between the broker and the principal, and never set by law, by an association or by a multiple listing service. Any agreement among competing brokers to fix a rate is price fixing. Laws of Agency covers why.
Common questions
How is real estate commission calculated in California?
Sale price times the stated compensation rate gives the gross. Allocate the percentage belonging to the relevant side, apply the agent's brokerage split to that side, then subtract any stated flat transaction fee. Use the allocation given in the problem or agreement rather than assuming every transaction is divided equally.
Is there a standard real estate commission rate in California?
No. Commission is fully negotiable between the broker and the principal, and it is never set by law, by an association or by a multiple listing service. Any agreement among competing brokers to fix a rate is a Sherman Act violation, which is why every listing agreement states the rate was not fixed by law.
When has a broker earned the commission?
Read the employment agreement and the broker's performance. Producing a ready, willing and able buyer on the agreed terms is a traditional earning rule, but an agreement can make compensation conditional on closing or another event. Acceptance alone does not settle every commission claim.