Purchase Commission Calculator
Calculate your net commission and see exactly how the splits break down — total fee, co-broker fee, and what each party takes home on a commercial acquisition.
Calculate the purchase commission
The transaction
Percent of purchase price paid to the buyer's broker. Typically half the total rate.
Three-way split
Splitting only what the listing side keeps after the co-broker fee is paid out.
Total commission
$300,000
3.00%Paid from the sale proceeds on a $10,000,000 transaction, leaving $9,700,000 to the seller before other closing costs.
- Purchase price
- $10,000,000
- Commission rate
- 3.00%
- Co-broker fee
- $150,000
- Retained after co-broker
- $150,000
- Split basis
- $150,000
Split breakdown
| Party | Share | Amount | % of purchase price |
|---|---|---|---|
| Outside broker | 50.0% | $75,000 | 0.750% |
| Principal broker | 30.0% | $45,000 | 0.450% |
| Cooperating broker | 20.0% | $30,000 | 0.300% |
Splits are percentages of the amount retained after the co-broker fee, so they should total 100%. Anything left over is shown as its own row rather than absorbed.
How commercial real estate purchase commissions work
Purchase commissions in commercial real estate are fees paid to brokers who facilitate a property transaction. Unlike residential real estate where commission structures are relatively standardized, commercial purchase commissions involve multiple parties, varying split arrangements, and co-brokerage agreements that can significantly impact the net proceeds of a deal.
The total commission is typically expressed as a percentage of the purchase price — usually between 1% and 6% depending on the property size, asset class, and market. This total is then divided among the parties involved: the listing broker, the buyer's broker (co-broker), and potentially additional cooperating brokers. Each party's share is defined by the brokerage agreements in place.
A co-broker fee is the portion of the total commission paid to the buyer's representative, typically half of the total commission rate. Within each brokerage firm, the commission is further split between the outside broker (the agent who sourced the deal), the principal broker (the firm's lead or managing broker), and any cooperating brokers who contributed to the transaction.
One thing worth settling before you rely on any commission model: whether the three-way split applies to the whole fee or only to what the listing side keeps after the co-broker is paid. Both structures are written in practice, and they are not close — on a $300,000 fee with a $150,000 co-broker payout, the outside broker's 50% is either $75,000 or $150,000. The calculator above makes that basis an explicit choice rather than an assumption buried in the arithmetic.
What this commission calculator includes
Total commission
Enter as a percentage or fixed dollar amount — the calculator computes the total fee from the purchase price.
Co-broker fee
Separate co-broker percentage applied to the purchase price, typically half the total commission.
Three-way split
Break down the commission among outside broker, principal broker, and cooperating broker by percentage.
Explicit split basis
Split the full commission, or only what the listing side retains after the co-broker fee — so the two never quietly double count.
Dollar amounts
See exact dollar amounts for each party based on the split percentages you define, plus each share as a percentage of purchase price.
Instant results
All calculations update immediately — adjust any input and see the full breakdown recalculate in real time.
Example: a $10,000,000 purchase at 3%
Sample inputs
- Purchase price
- $10,000,000
- Total commission
- 3%
- Co-broker fee
- 1.5%
- Outside broker
- 50%
- Principal broker
- 30%
- Cooperating broker
- 20%
On a $10,000,000 purchase at 3%, the total commission is $300,000. The co-broker fee — 1.5% of purchase price — is $150,000, which is the buyer side's half of that same fee, leaving $150,000 with the listing side.
Splitting that retained $150,000 three ways at 50/30/20, the outside broker receives $75,000, the principal broker $45,000, and the cooperating broker $30,000. That is the calculator's default because it is the only basis on which the payments cannot exceed the fee. Where the agreement splits the gross instead, switch the basis to “total” and the same percentages apply to the full $300,000 — $150,000, $90,000 and $60,000 — with the co-broker line read as a description of the buyer side's half rather than a further deduction. Which one applies is a question for the brokerage agreement, not for the calculator, so both are available and neither is hidden.
Understanding this breakdown is essential for brokers negotiating commission splits and for investors modeling total acquisition costs. The commission directly impacts your effective purchase price and initial equity requirement.
Frequently asked questions
What is a typical commercial real estate purchase commission?
Commercial purchase commissions typically range from 1% to 6% of the purchase price, depending on the property size, asset class, and market. Larger transactions often have lower percentage rates, while smaller deals may carry higher rates. The total commission is usually split between the listing broker and the buyer's broker (co-broker).
What is a co-broker fee?
A co-broker fee is the portion of the total commission paid to the buyer's broker (the cooperating brokerage). It's typically expressed as a percentage of the purchase price and is usually half of the total commission rate. For example, if the total commission is 3%, the co-broker fee is often 1.5%.
How are commercial real estate commissions split?
Commission splits in commercial real estate are negotiated between the brokerage firms and individual brokers. A common structure is a three-way split: the outside broker (agent who sourced the deal) receives the largest share, followed by the principal broker (managing broker or firm), and a cooperating broker if applicable. Typical splits might be 50/30/20 or 60/25/15.
Who pays the commission on a commercial real estate purchase?
In most commercial real estate transactions, the seller pays the commission from the sale proceeds. The total commission is then split between the listing brokerage and the buyer's brokerage according to the co-brokerage agreement. However, commission structures can be negotiated — in some deals, the buyer may pay their broker directly.
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Related guides
How to analyze a CRE deal
The complete deal analysis framework.
Commercial real estate metrics
Every CRE metric explained in one place.
How to underwrite a CRE deal
Where acquisition costs sit in the full underwriting process.
What is cap rate?
The rate the purchase price the commission is charged on was set by.
The commission is the easy number. The deal underneath it is not.
DealWise AI underwrites the acquisition itself — NOI derived from the actual rent roll, debt sized against it, and the variance between what the offering memorandum claims and what the leases support.