How to Calculate Brokerage Commission

Depending on what type of broker you are working with the commissions will vary. A stock broker commission will differ from a real estate, insurance or mortgage broker firm. However commissions are generally based on a specific dollar amount, whether it be the total cost to purchase stocks, a loan amount for a mortgage, a real estate broker commission which is based on the sale price of a property or an insurance broker who may charge a standard flat fee as commission. The calculation to take either a specific dollar amount considered as commission and turn that into a percentage or taking a percentage and turning that into a dollar amount will still pertain in all cases.
Calculate a percentage quoted to you of (4) per cent as a commission charge from a real estate broker to sell your home for the price of $200,000. Calculation is: .04 (multiplied by) $200,000 (equals) $8,000.00 in commission. To check your math take the $8,000. and (divide) into $200,000. Your answer should be .04 per cent.

Calculate a flat fee of $2,000. being charged to you by a mortgage broker to obtain a new mortgage refinance loan for your $350,000. home. Calculation is: $2,000. (divided by) $350,000. (equals) .0057142 percent as commission charged when we bring out to a full percentage. To check your math simply take .0057142 and (multiply by) the loan amount of $350,000. and your answer should be $1,999.97

Calculate a commission charge of (3) per cent for the purchase of $22,000. worth of stock through a stock broker. Calculation is: .03 (multiplied by) $22,000. (equals) $660. To check your math simply take the $660. and (divide by) the $22,000. purchase price and your answer should be .03 per cent .

Calculate a flat charge of $90. an auto insurance broker is charging you as commission to place you into an auto insurance program, and your yearly premium for the insurance is $1,800. Calculation is: $90.00 (divided by) $1,800. (equals) 0.05 per cent. To check your math (multiply) the 0.05 by the $1,800. and your answer should be $90. as the brokers commission or flat fee.

To turn a commission percentage into a dollar amount multiply the percentage by the dollar amount of the purchase or loan. To turn a dollar amount into a percentage divide the dollar amount of the commission into the dollar amount of the loan or purchase.