Free tool · For real estate agents
Real Estate Referral Fee Calculator
A referral fee is the sale price times the commission rate times the referral percentage. On a $500,000 sale at 3%, a 25% referral fee is $3,750, paid broker to broker out of the receiving agent's side. Enter your numbers below to see the fee and what each agent keeps.
Referral fee calculator
Change any number and the fee and both agents' take-home pay update as you type.
How to calculate a real estate referral fee
Multiply the sale price by the commission on the referred side, then multiply that by the referral percentage.
The fee usually comes off the top of the side's commission, before the receiving agent splits with their broker. Each agent then keeps their own split of what their broker was paid.
Some agreements are written differently, so read yours.
| Step | Example | Result |
|---|---|---|
| Commission on the side | $500,000 x 3% | $15,000 |
| Referral fee at 25% | $15,000 x 25% | $3,750 |
| Left for the receiving broker | $15,000 - $3,750 | $11,250 |
| Receiving agent at a 70/30 split | $11,250 x 70% | $7,875 |
| Referring agent at a 70/30 split | $3,750 x 70% | $2,625 |
What is a normal referral fee in 2026?
25% of the receiving side's commission is the most common referral fee, and most fall between 20% and 35%.
- Agent to agent: usually 20% to 35%, with 25% the most common (The Close, April 2026).
- HousingWire reports fees from 25% up to 40%.
- Lead programs charge more: Zillow Flex raised its fee from 35% to 40% in six markets in 2023 (Mike DelPrete).
- Relocation companies and referral networks set their own rates, so read the agreement before you take the client.
Sifta calculation. Typical rates from The Close and HousingWire.
Who pays the referral fee
The receiving agent's broker pays the referring agent's broker at closing, not agent to agent and not the client.
The referring agent is then paid by their own broker, under their own split. That is why the calculator asks for both splits.
- Put it in writing before the client is passed: the fee, the client's name, both brokers and when it is paid.
- Add the referral to the transaction file so the fee is paid at closing and nobody has to chase it.
- Tell the referring agent how the client is doing. It is the easiest way to get the next referral.
Is a real estate referral fee legal?
Yes, between licensed agents and brokers: federal RESPA rules allow cooperative brokerage and referral arrangements between real estate agents and brokers.
That exception, in 12 CFR 1024.14(g)(1)(v), covers agents and brokers only. It does not let you trade referral fees with lenders, title companies or other settlement providers.
Paying a referral fee to someone who is not licensed, such as a friend who sent you a client, is generally not allowed. Some states allow a small thank-you gift.
Your state's license law is the final word.
Referral agreement checklist
A referral agreement should name the client, the fee, both brokers and how long it lasts before anyone contacts the client.
- 01Both brokerages and both agents, with license numbers.
- 02The client's name, and whether they are buying, selling or both.
- 03The fee, as a percentage of the receiving side's gross commission.
- 04How long the referral stays valid.
- 05When and how it is paid: broker to broker, at closing.
- 06Signatures from both brokers.
Link to this calculator
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Where Sifta fits
A referral is won or lost in the follow-up after the handoff, and that is the work Sifta handles.
Sifta is a personal AI assistant for realtors. It runs the busywork of your business, so you can spend your time with clients.
When a referred client comes in, Sifta texts you with a first reply already drafted in your voice, keeps the follow-ups going, and reminds you to update the agent who sent them.
Sources
5 sources
Every figure was checked on the source page on October 2, 2026.
Frequently Asked Questions
How do you calculate a real estate referral fee?
Multiply the sale price by the commission rate on the referred side, then by the referral percentage. On a $500,000 sale at 3% with a 25% fee, the referral fee is $3,750.
Is the referral fee taken before or after the broker split?
Usually before. The fee comes off the top of the receiving side's gross commission, and the receiving agent splits what is left with their broker. Check your agreement, since some are written differently.
What is a normal real estate referral fee?
25% of the receiving side's commission is the most common. Most fall between 20% and 35%, and lead programs such as Zillow Flex can charge up to 40%.
Who pays the referral fee?
The receiving agent's broker pays the referring agent's broker, usually at closing. The client does not pay it, and agents should not pay each other directly.
Can I pay a referral fee to someone who is not licensed?
Generally no. Referral fees are paid between licensed brokers. Some states allow a small thank-you gift, so check your state's license law.
Do I need a written referral agreement?
Yes. Get it signed by both brokers before the client is contacted, with the client's name, the fee, how long it lasts and when it is paid.
Related reading
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