Commercial Real Estate Commission Calculator

This commercial real estate commission calculator estimates a sale commission or a lease commission from the price, rent, term, and rates you enter.

Deal type

Commission

$100,000.00

Step by step

  1. $2,000,000.00 × 5% = $100,000.00
  2. $100,000.00 × 60% = $60,000.00
  3. $100,000.00 − $60,000.00 = $40,000.00
Calculation breakdown
Total commission$100,000.00
Listing side$60,000.00
Cooperating side$40,000.00

How to calculate commercial real estate commission

Sale mode is price times the commission rate. A $2,000,000 sale at 5% is $100,000. You can give the listing side a share of that fee. At 60% to listing, listing is $60,000 and the cooperating broker is $40,000. The share is a percent of the commission, not a second percent of the price.

Lease mode starts with total rent: monthly rent times the number of months. $8,000 a month for 36 months is $288,000 of rent. A 6% commission on that total is $17,280. Some agreements instead quote a percent of one year's rent or a schedule. If yours does, convert it into the percent of total rent that matches the contract before you type it.

The split-rate option uses one percent for the first 60 months and another after that. On $10,000 a month for 84 months, years 1 through 5 are 60 months at 6%, which is $36,000. The remaining 24 months at 3% are $7,200. The commercial lease commission is $43,200. A term of 48 months never reaches the second rate.

Worked example

Sale example: $2,000,000 times 5% is $100,000. A 60% listing share is $60,000. The cooperating side is the other $40,000. If the agreement is a 50/50 co-broke, set the listing share to 50 and each side is $50,000.

Lease example with two rates: $10,000 monthly rent, 84 months, 6% for the first five years and 3% after. First slice $36,000, second slice $7,200, total $43,200. Switch off the split rates and enter one percent if the contract uses a single rate on all rent.

How commercial lease commission is often structured

Commercial fees are negotiated deal by deal. A sale might be a percent of price. A lease might be a percent of the total rent over the term, sometimes with a lower percent on option years or on years after the fifth. Tenant representation and landlord representation can split that fee, or one side can be paid a separate amount. This page does not assume a co-broke.

Free rent, tenant improvement allowances, and expense stops change the rent that a commission clause uses. If the clause says commission is on net effective rent, do that adjustment before you enter the monthly number. The real estate commission calculator is built for a home sale with a broker split, not for a lease schedule.

Two ways to describe a lease fee. Examples, not market rates.
Contract styleWhat you enterResult on $10,000 a month
5% of total rent, 5 years60 months at 5%$30,000
6% then 3% on a 7-year term60 months at 6%, 24 at 3%$43,200
One month of rent100% of one month, or use the rental page later$10,000

FAQ

How do you calculate a commercial real estate commission on a sale?

Multiply the price by the rate in the agreement. A $2,000,000 sale at 5% is $100,000. If listing and cooperating brokers share that fee, apply their split to the $100,000, not to the price again. A 60% listing share is $60,000. The other $40,000 is the cooperating side.

How is a commercial lease commission calculated?

A common version is a percent of total base rent over the term. Monthly rent times months is the lease value, and the rate applies to that value. $8,000 times 36 months is $288,000, and 6% of that is $17,280. If the clause uses a different rent definition, adjust the monthly amount before you calculate.

Why would years 1 through 5 use a different rate?

Some lease listings pay a higher percent on the first five years and a lower percent on the rest of the term or on option years. This page applies the first rate to 60 months and the second rate to every month after that. A lease shorter than 60 months uses only the first rate. Options that are not yet exercised should not be included unless the clause says to.

Does this include a broker split for the agent?

No. The result is the fee at the deal level, plus an optional listing and cooperating split of that fee on a sale. Your personal split with your brokerage is a second step. Run that amount through the broker split calculator if you need agent net after a house split, a cap, or a transaction fee.

Should free rent be included in the lease value?

Only if the commission clause counts it. Many clauses pay on rent actually scheduled, and a free-rent period adds months with zero rent or reduces the effective rent. This calculator multiplies the monthly rent you type by the term you type. Put the rent figure the contract uses in the monthly box.

Is there a standard commercial commission rate?

No. Sale percents and lease schedules are negotiated, and they move with property type, term, and local custom. The 5% and 6% figures in the examples are there so the page is filled in. Replace them with the listing or the tenant-rep agreement. Do not quote the example as a market rate.

About this calculator

Commissionly calculates commercial sale commission as price times rate, and lease commission as rent times months times rate, with an optional second rate after month 60. Last updated October 22, 2026. Confirm the rent definition in the commission clause. This is not a brokerage opinion.

Last updated October 22, 2026.