Real Estate Commission & VAT Calculator
Quickly see what a real estate agent's commission — plus VAT on that commission — will cost you as a seller, and how much of your sale price you actually take home.
%
%
Sale price minus agent commission and VAT on commission
3.6%
cost rateNet proceeds
96.4%
Commission
3%
VAT on commission
0.6%
- 1
Agent commission
350,000 × 3% ÷ 100 = 10,500 - 2
VAT on commission
10,500 × 20% ÷ 100 = 2,100VAT applies to the commission fee only, not to the property price. - 3
Total selling cost
10,500 + 2,100 = 12,600 - 4
Net seller proceeds
350,000 − 12,600 = 337,400
How does this calculator work?
A real estate agent's commission is Sale Price × Rate%, and VAT is charged on that commission amount only. Subtract both from the sale price to get your net proceeds. For a £350,000 home at 3% commission and 20% VAT on the fee, you'd net roughly £337,400.
Formula
How this is calculated
When you sell a property, the agent's commission is calculated as a percentage of the agreed sale price. In most countries, agents must charge VAT on their service fee — but the VAT applies to the commission amount only, not to the full property price. A 3% commission on a €350,000 sale is €10,500; if VAT is 20%, the VAT on that fee is €2,100, so your total selling cost is €12,600 and your net proceeds are €337,400.
Commission rates vary significantly by country and market: typically 1–2% in the UK, 3–6% in the US (often split between buyer and seller agents), and 2–5% across continental Europe. VAT rates on services also differ: 20% in the UK and France, 19% in Germany, 21% in the Netherlands, and zero in some jurisdictions where property services are VAT-exempt. The defaults are illustrative — adjust them to match your actual contract and jurisdiction.
Note that this calculator covers only the agent's fee and VAT on it. Other selling costs — legal fees, conveyancing, capital gains tax, mortgage redemption penalties — are not included here.
Frequently asked questions
VAT applies only to the agent's commission (their service fee), not to the property price itself. Property transactions are generally exempt from VAT in most countries, though stamp duty and transfer taxes may apply separately.
Rates vary widely by country: roughly 1–2% in the UK, 2–3% per agent (sometimes 5–6% total) in the US, and 2–5% in most of Europe. Some markets have fixed fees rather than percentage rates. Always confirm the rate in your agent's contract.
Yes — commission rates are typically negotiable, especially in slower markets or for high-value properties. Some sellers engage fixed-fee agents or use hybrid models. Entering a lower rate in this calculator lets you compare the financial impact of negotiating.
Also known as
TG we-Calculate Editorial Team. (2026). Real Estate Commission & VAT Calculator [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/real-estate-commission-vat-calculator
TG we-Calculate Editorial Team. "Real Estate Commission & VAT Calculator." TG we-Calculate. 2026. https://we-calculate.com/calculator/real-estate-commission-vat-calculator.
TG we-Calculate Editorial Team, "Real Estate Commission & VAT Calculator," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/real-estate-commission-vat-calculator
@misc{wecalculate_real_estate_commission_vat_calculator, title = {Real Estate Commission & VAT Calculator}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/real-estate-commission-vat-calculator}}, year = {2026}, note = {TG we-Calculate} }
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