How commission splits are calculated

3 min read

Agent take = total commission x brokerage split x agent split. The three-step chain the NY exam tests, worked end to end.

Agent’s Take = Total Commission × Brokerage Split × Agent Split

How to solve it, step by step

  1. Work out the total commission from the sale price first.
  2. Split it between the listing and selling brokerages using the co-broke split.
  3. Take the agent’s percentage of their own brokerage’s share — never of the full commission.
  4. Re-read the question to confirm whose share is being asked for.

Worked examples

Total commission $30,000. The listing brokerage keeps 50% ($15,000), and the agent receives 70% of that. Agent earns $15,000 × 0.7 = $10,500.
Full chain: a $600,000 sale at 5% = $30,000 total. Split 50% to each side = $15,000. Agent’s 60% share = $9,000.

What the NY exam actually asks

This is the single most common NY math question type. The exam gives you a sale price and makes you walk the whole chain: sale price to total commission, total to brokerage side, brokerage side to agent. Miss one multiplication and the answer is wrong.

Try one yourself

A home sells for $380,000 at a 6% commission. The brokerages split 50/50, and the selling agent receives 60% of their brokerage’s share. What does the selling agent earn?

Show the answer

$6,840. Total commission $22,800; the selling brokerage receives $11,400; the agent takes 60% of that = $6,840.

Common mistakes

  • Splitting once and stopping. There are usually two splits: between brokerages, then between brokerage and agent.
  • Assuming a 50/50 co-broke when the question states otherwise.
  • Multiplying the agent’s percentage by the full commission instead of by the brokerage’s half.

Questions students ask

What does a 50/50 co-broke mean?

The listing and selling brokerages divide the total commission equally. Each brokerage then splits its half with its own agent.

Does the agent get paid by the seller?

No. The seller pays the listing broker, the broker pays the agent. Compensation flows through the brokerage.

Related formulas

Practise this. The free 10-question math quiz drills these formulas, and the free timed practice exam puts them under exam conditions.
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