Real Estate Commission Calculator

Agent Commission and GST

Real estate agent commission is the sale price multiplied by the agent's quoted rate, or the fixed fee written in the agreement. At the example $800,000 sale price, a 2.75% quote gives $22,000 of commission.

Check whether that quote includes GST. In a GST-inclusive amount, the GST is one eleventh, so $22,000 includes $2,000 of GST. A quote of 2.5% plus GST starts at $20,000, then adds 10% to reach the same $22,000.

A tiered quote changes the rate at set sale prices. Consumer Affairs Victoria's selling guidance gives an example of 3.3% including GST below $500,000 and 3.85% above it, with a $585,000 sale. Applying each rate to its own band gives $16,500 plus $3,272.50, or $19,772.50 in total.

The agent can instead read that quote as 3.85% of the whole $585,000, which gives $22,522.50. The calculator shows both readings, so you can see the $2,750 difference before the agreement is signed. It treats a price exactly on a threshold as part of the lower tier.

Net Proceeds for a Purchase or Bridging Loan

Net proceeds are the sale price less agent commission, marketing and other selling costs. Subtracting the secured debt to discharge then shows the cash available for a next purchase or a bridging loan.

In the example, an $800,000 sale less $22,000 of commission and $5,000 of marketing and other costs leaves $773,000. Discharging $500,000 of secured debt leaves $273,000 of cash.

If the secured debt is $800,000, the same sale leaves a $27,000 shortfall. The calculator shows it as a negative amount because the seller must fund that gap to discharge the loan.

Enter marketing and other costs at the amounts you will pay, including any GST. The calculator adds GST only to the commission, so each cost counts once. For the debt, use the lender's payout figure, which can include fees on top of the balance.

The cash after debt is the starting point for the next deposit and purchase costs. The stamp duty calculator estimates transfer duty on that purchase. For a bridging loan, net proceeds before debt show how much the sale can repay once it settles. The bridging loan calculator models the debt that remains after that repayment.

State and Agency Wording

The commission comes from the agent's quote in every state, so the calculator has no state rate to select. State guidance in NSW, Queensland, Victoria and WA treats the amount as negotiated between the seller and the agent:

• NSW Government guidance says you can negotiate the amounts of any commissions, fees or other expenses. It suggests asking each agent for a printed list of fees, commission rates and expenses (NSW agency agreements).
• Queensland's fair trading guidance sets no limit on commission. The commission must include GST, and the appointment to act must say so (Queensland commission rules).
• Consumer Affairs Victoria says commission can be a fixed fee, a percentage or both. A percentage must also appear in dollars on the sales authority.
• WA Consumer Protection says the selling fee is not a set amount. Marketing costs are usually payable even if the property does not sell, unless the written authority says otherwise (selling a property in WA).

In Tasmania, the Property Agents and Land Transactions Act 2016 requires the written appointment to show how the agent's fee is calculated. Enter that calculation here as a percentage, fixed fee or tiers.

Searches for an REIQ, Ray White or Harcourts commission calculator need the same arithmetic. For example, if an agent quoted 2.2% including GST on a $900,000 sale, the commission would be $19,800, including $1,800 of GST. That figure comes from the entered quote. The calculator does not know what any agency or agent will offer.

Before relying on the result, compare the commission with the dollar amount in the agreement. If they differ, ask the agent which tier reading or GST basis the agreement uses.