How is real estate commission calculated?
Gross commission is found by multiplying the sale price by the commission rate: gross commission = sale price × (commission rate ÷ 100).
For example, a 2% commission rate on a $300,000 sale means $6,000 in gross commission.
How does VAT affect the commission?
VAT is added on top of the gross commission amount and makes up the total service fee invoiced to the client.
The VAT rate in this calculator defaults to 20%; you can change it to match your own situation.
Is the commission rate fixed by law?
The real estate commission rate is freely negotiated between the parties; there is no single rate mandated by law.
In practice, rates vary by region and transaction type; agreeing on the rate in writing before the contract prevents disputes.
What this calculator is not for
This tool only gives a quick estimate of gross and VAT-included commission; it does not replace formal accounting records or tax filings.
Tracking the real income and expenses of closed deals requires a transaction-based record system.