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.
Estimated Annual Income and Expenses for a Real Estate Agent
Net Profit: $0.00