The purpose of this tool is to help real estate agents determine their annual expected income. This is based on a simple formula for determining average income per sale.

This information is necessary to complete tax planning. It’s helpful in determining your quarterly tax liability

INSTRUCTIONS:

AVERAGE GROSS SALE – Input the average annual gross sale per property. If you sold 10 properties, add the gross dollars and divide by 10, enter the result here

AVERAGE ONE SIDE COMMISSION: input the average commission dollars to your brokerage, one side only

AVERAGE BROKER COMMISSION: Input the average percentage the broker deducts from the average one-side commission above. It may be 20%, 30% etc. Enter as a decimal with a period e.g. .20 for 20%

NET COMMISSION: This is the result of subtracting the Broker Commission from the Average One Side Commission

ANNUAL NUMBER OF PROPERTIES SOLD: Enter the number of properties that you expect to earn income on during a one year period

ANNUAL NET COMMISSION: This is calculated and is the result of multiplying the net commission by the annual properties sold

ANNUAL EXPENSES: Use the calculator found HERE to enter the total annual expenses here

NET PROFIT: This is what you have earned after all expenses. You may have expenses other than those listed for example, clothing which is not tax deductible by you may believe it’s a valid expense so include it in other calculators.