Commission is usually a percentage of the sale price: sale price × rate. A 1.2% fee on a £400,000 sale is £4,800, and with 20% VAT the seller pays £5,760. Some agents charge a fixed fee instead. What changes between countries is who pays, whether tax is added on top, and how the fee is shared between agents and brokerages.
The free commission calculator turns any rate or fixed fee into real amounts, including tax, each side’s share, the agent’s split and what the seller keeps. It is arithmetic, not financial advice; fees are always negotiable.
How is commission calculated in the UK?
In the UK the seller pays their estate agent, and buyers normally pay nothing to the seller’s agent. Fees are agreed in the agency contract and are typically a percentage of the final sale price, quoted either plus VAT or including VAT. VAT is charged at the standard rate, currently 20%, by VAT-registered agents.
The rate depends on the agency, the area, the price and the type of contract:
- Sole agency: one agent sells the property. Usually the lower rate.
- Multi-agency: several agents compete, and only the one who finds the buyer is paid. Usually a higher rate.
- Fixed-fee and online agents: a set fee, sometimes paid upfront whether or not the property sells.
Example: a £400,000 sale at 1.2% plus VAT is £4,800 + £960 VAT = £5,760. The seller receives £394,240 before legal fees and the mortgage are paid off.
Always check whether a quoted rate includes VAT. “1.2% plus VAT” is really 1.44%.
How is realtor commission calculated in the US?
US commission has traditionally been a single percentage, often 5–6% of the price, paid by the seller and shared between the listing brokerage and the buyer’s brokerage. Each agent then splits their side with their own brokerage.
That changed with the NAR settlement, in effect from 17 August 2024. Offers of buyer-agent compensation can no longer be made through the MLS, and buyers working with an agent must sign a written agreement that sets out what their agent is paid. A seller may still agree to contribute, but the two sides are now negotiated more separately.
Example: a $450,000 sale with a 5.5% total, shared 50/50, is $24,750 in total and $12,375 per side. A listing agent on a 70/30 split with their brokerage keeps $8,662.50 before any desk or transaction fees.
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How does commission work in Dubai and the UAE?
In Dubai the buyer usually pays the agent 2% of the price, plus 5% VAT on the fee, on a resale. On a AED 2,500,000 apartment that is AED 50,000 + AED 2,500 VAT = AED 52,500. Off-plan sales are often paid by the developer instead. Separately, the Dubai Land Department charges its own transfer fee, which is not commission.
What does “agent split” mean?
The commission goes to the brokerage, not straight to the agent. The agent’s contract sets what share they keep, such as 70/30 or 80/20, sometimes rising after they reach a target. Brokerages may also deduct desk fees, transaction fees or franchise fees. The calculator’s agent’s split and fees deducted fields show the agent’s real take-home.
Commission at a glance
| Market | Who usually pays | Typical basis | Tax on the fee |
|---|---|---|---|
| UK | Seller | % of sale price or fixed fee | VAT at 20% if the agent is registered |
| US | Negotiated; often seller for the listing side, buyer agreement for the buyer side | % of sale price, shared between brokerages | Generally none |
| Dubai, resale | Buyer | 2% of price | VAT at 5% |
| Lettings (UK) | Landlord | % of rent or fixed fee | VAT at 20% |
Typical rates move with the market and vary by region. Use the figures in quotes you have actually received.
How do you compare two agents’ fees?
Turn both into amounts at the same expected price, including VAT, and compare what the seller keeps. A 1% fee and a 1.4% fee are £1,600 apart on a £400,000 sale, which is easier to weigh against what each agent offers. Also compare the tie-in period, notice period and what happens if a buyer introduced by the agent buys later.
How do agents justify a higher fee?
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