1. What is the eXp Commission Formula?

The eXp Realty commission formula calculates the commission amount based on the total sales amount and the agreed commission rate. This simple calculation helps agents quickly determine their earnings from a transaction.

2. How Does the Calculator Work?

The calculator uses the commission formula:

Where:

• \( Sales \) — Total sales amount in dollars
• \( Commission\ Rate \) — Agreed commission rate as a decimal (e.g., 0.03 for 3%)

Explanation: The formula multiplies the sales amount by the commission rate to determine the total commission earned.

3. Importance of Commission Calculation

Details: Accurate commission calculation is crucial for real estate agents to understand their earnings, plan finances, and negotiate contracts effectively.

4. Using the Calculator

Tips: Enter the total sales amount in dollars and the commission rate as a decimal (e.g., 0.025 for 2.5%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I convert percentage to decimal?
A: Divide the percentage by 100. For example, 3.5% becomes 0.035 in decimal form.

Q2: Is this before or after brokerage splits?
A: This calculates gross commission before any splits or deductions.

Q3: What's a typical commission rate in real estate?
A: Rates vary but often range between 2.5%-3% per side in many markets (5-6% total typically split between buyer and seller agents).

Q4: Does this include eXp's ICON split?
A: No, this calculates gross commission before any company splits or ICON deductions.

Q5: Can I calculate monthly earnings with this?
A: Yes, by summing all monthly sales and applying your average commission rate.