How to read this result
In the default example, referral fee is $3,125.00. Results describe this input scenario; they are not a recommendation.
Change one assumption at a time to see how it affects the scenario. Compare periods and cost definitions consistently. Negative results show a modeled shortfall; an unavailable ratio needs a valid denominator.
Formula and methodology
Calculate a referral fee as a percentage of the commission basis or as an explicit flat dollar amount. Subtract it from the basis to show the retained commission before other deductions.
Enter percentages as whole numbers: 5 means 5%. When used as a factor, the calculation divides a percentage by 100. Percentage outputs multiply the final ratio by 100. Calculations retain precision internally; displayed amounts and rates are rounded to two decimals.
Variables and input definitions
- Commission basis (USD)
- Commission amount on which referral is calculated. Minimum: 0.
- Referral fee rate (%)
- User-entered referral percentage. Minimum: 0. Maximum: 100.
- Fee mode (select)
- Percentage or flat fee.
- Flat referral fee (USD)
- Used only in Flat fee. Minimum: 0.
Worked example
This example uses the exact prefilled inputs above. Reset defaults to restore this scenario after making changes.
| Item | Default scenario |
|---|---|
| Commission basis | $12,500.00 |
| Referral fee rate | 25.00% |
| Fee mode | Percentage |
| Item | Default scenario |
|---|---|
| Referral fee | $3,125.00 |
| Commission retained after referral | $9,375.00 |
Assumptions and limitations
Referral-fee legality and disclosure requirements vary. Numerical calculator only.
Results describe this input scenario; they are not a recommendation.
The tool uses values you supply. It does not retrieve market prices, verify leases or inspect a property. Results exclude items outside the listed inputs. Review local requirements and the relevant contract when a payment, fee or allocation depends on them.
Common mistakes
The commission basis is not the property sale price unless the agreement explicitly uses that basis. The tool does not decide eligibility to receive a referral fee.
Sources and method references
These references provide context for the method and terminology. They do not endorse this tool or validate your property assumptions.
- National Association of REALTORS® — 2026 Code of Ethics & Standards of PracticeBroker compensation is not set by law and is fully negotiable.
Frequently asked questions
What does commission basis mean?
It is the agreed dollar commission amount used for referral calculation. In the default example, 25% of $12,500 is $3,125.
Can retained commission be negative?
Yes. A flat referral fee can exceed the supplied basis. The tool displays that consequence without replacing the amount.