How Much Do Realtors Make Per Sale? The Real Split Math

A $500,000 home sells and the commission line on the closing statement looks large. Then it gets divided, and divided again. By the time the agent who listed or sold the home deposits a check, it's a fraction of that line, and taxes haven't come out yet.

This guide walks through where the money goes on a typical sale, with a worked example, the splits most agents work under, the costs nobody puts in the recruiting pitch, and what agents earn over a year.

Not legal advice. Check your state rules and your broker. For taxes, ask a tax professional.

How realtors get paid

Agents are usually paid only when a deal closes. The commission is paid to the brokerage, not directly to the agent, and the brokerage pays the agent their share under their agreement.

Commission rates are not fixed. Under the NAR settlement practice changes that took effect August 17, 2024, listing agreements must state that broker compensation is not set by law and is fully negotiable. Offers of compensation to buyer brokers can no longer be communicated on the MLS, and agents working with buyers must have a written agreement before touring a home. In practice, the seller's side and the buyer's side may each negotiate their own compensation, and who pays the buyer's agent (the buyer, the seller as a concession, or both) can differ from deal to deal. There is no standard rate.

Because rates vary so much by market, price point and negotiation, the example below uses round numbers to show the math. Swap in your own.

The worked example

Say a home sells for $500,000, and the listing side's negotiated compensation is 2.5% and the buyer side's is 2.5%. These numbers are only for illustration.

That's before the agent's own business expenses and taxes. If the agent is on a team, the team leader may take a share before or after the brokerage split. If the lead came from a referral network or online lead service, a referral fee, often a sizable share of the agent's side, can come off the top.

So on a $500,000 sale where the line on the closing statement shows $12,500 for the listing side, the listing agent may net well under $8,000 before taxes. If that same agent spent $1,500 marketing the listing (photos, video, staging, mail), the net drops again.

The splits agents work under

Brokerages use a few common structures. These are examples only:

1. Traditional split. The agent and brokerage divide each commission by a fixed percentage, such as 60/40, 70/30 or 80/20, often improving as the agent produces more.
2. Split with a cap. The agent pays the brokerage a percentage until they've paid a set annual amount, then keeps close to 100% for the rest of the year, minus fees.
3. 100% commission. The agent keeps the commission and pays the brokerage flat monthly or per-transaction fees.
4. Team split. The team provides leads or support and takes a share of each deal on top of the brokerage split.

The right structure depends on volume. A capped or 100% model rewards high producers. A higher split with more support can make sense for a newer agent who needs training and leads. Do the math with your own expected volume before switching.

The costs that come out of the agent's share

Agents usually pay their own business expenses. The list is longer than most new agents expect:

1. Association and MLS dues
2. Brokerage desk fees, monthly fees or technology fees
3. Errors and omissions insurance, if the brokerage passes it through
4. Licensing, renewals and continuing education
5. Lead generation: data, dialers, ads, mailers, portals
6. Listing marketing: photography, video, staging, signs
7. Car, phone, gas and client gifts

Then taxes. If your brokerage pays you as an independent contractor (check your agreement), no tax is withheld from your commission checks. You may owe self-employment tax on your net earnings. The IRS puts the self-employment tax rate at 15.3% (12.4% Social Security and 2.9% Medicare), on top of income tax, and self-employed people may need to pay estimated taxes quarterly.

What realtors make in a year

Per-sale math is half the picture. The other half is how many sales close. The U.S. Bureau of Labor Statistics reports a median annual wage of $52,830 for real estate sales agents and $73,220 for real estate brokers as of May 2025. BLS also notes that most of their income comes from commissions, and that beginners can go weeks or months between sales.

The median hides a wide range. Agents with a steady listing pipeline do very differently from agents who close a few buyer deals a year. The gap usually comes down to how many conversations an agent has every week, and whether they work listings or rely on buyers.

Why listing agents tend to earn more per hour

On paper, both sides of a deal may be paid similarly. In hours, they're often not. A buyer can tour dozens of homes over months, cut their budget, or decide to rent, and every one of those hours produces nothing if the buyer walks. A listing is different. Once it's signed, the home is marketed by the MLS, the photos and the price, and it keeps producing: sign calls, open house visitors, neighbor conversations and the next listing on the street.

That's why many top producers build around listings. Our guide on how to get listings covers where to start.

How to make more per sale

1. Explain your fee with confidence. Some sellers treat how you handle your own fee as a preview of how you'll negotiate their price. Our guide to the "your commission is too high" objection covers how to answer.
2. Lead with the seller's net. Sellers care about what they walk away with. A seller net sheet moves the conversation from your fee to their bottom line.
3. Review your split every year. Run last year's closings through two or three brokerage models.
4. Cut lead costs you can't measure. If a lead source can't show you closings, cut it.
5. Raise your average price point gradually, by farming and prospecting in the price range you want to work.

Plan with your own numbers

Take your net per closing and work backward to how many closings, listings, appointments and conversations you need. The real estate agent business plan guide does this step by step.

One simple way some agents split every check: 35% set aside for taxes, 30% for living expenses, and 35% back into the business and long-term savings. Treat it as a planning idea and ask a tax professional what fits your situation.