CAREER MATH
What You Keep vs. What You Pay
At KW Success, a $250,000 year (20 closings at $12,500 each) costs $22,740 in total, and you keep $227,260 (90.9%). The split caps at $16,000, the royalty caps at $3,000, and you pay $124 per closing plus $105 a month. Run your numbers below.
How much do agents keep in a year?
Your year at this office (illustrative)
You keep
$227,260 (90.9%)
of $250,000, before taxes and your own business expenses
You pay
$22,740
total for the year
Company split $16,000 (capped) · royalty $3,000 (capped) · per-closing fees $2,480 (20 × $124) · monthly fee $1,260 ($105 × 12)
Gross commission (GCI): $250,000 (20 deals × $500,000 × 2.5%)
What you keep (illustrative, $12,500 GCI per deal: $500,000 sale at 2.5%)
| GCI | Deals | You keep | Kept % | You pay |
|---|---|---|---|---|
| $100,000 | 8 | $78,748 | 78.7% | $21,252 |
| $150,000 | 12 | $128,252 | 85.5% | $21,748 |
| $200,000 | 16 | $177,756 | 88.9% | $22,244 |
| $250,000 | 20 | $227,260 | 90.9% | $22,740 |
| $300,000 | 24 | $276,764 | 92.3% | $23,236 |
You pay = min(30% × GCI, $16,000) + min(6% × GCI, $3,000) + $124 × closings + $1,260. Before taxes and your own business expenses.
When do you cap?
At $12,500 GCI per deal, the royalty caps on deal 4 ($50,000 GCI) and the company split caps on deal 5 ($62,500 GCI; the cap is reached at $53,333). After that, split and royalty stop for the year at $19,000 combined.
What does every closing cost?
$124 per closing ($75 transaction + $49 E&O), whether you have capped or not. Plus $105 a month, all 12 months.
Growth scenarios, years 1–5 (illustrative)
Same starting volume, three illustrative growth rates. GCI is gross commission, before costs and taxes.
Scenario A
5%/yr
26
deals in year 5
$1.45M
gross GCI, years 1–5
$1.33M
you keep, years 1–5
Scenario B
12%/yr
35
deals in year 5
$1.76M
gross GCI, years 1–5
$1.64M
you keep, years 1–5
Scenario C
25%/yr
61
deals in year 5
$2.56M
gross GCI, years 1–5
$2.44M
you keep, years 1–5
Scenario A, B and C are illustrative growth rates, not benchmarks or predictions. GCI is gross commission before brokerage costs and taxes. Figures are estimates for comparison, not financial planning. Your results will vary.
Know your total cost. Then plan your growth.
Know your total cost in writing before you plan your year. Then look at what helps you grow: training, models and the people around you.
Download the total-cost breakdown →Run your total cost, not just your split.
Get the one-page breakdown from the video: what you’d pay here in a year at 3, 6, 12 and 20 deals.
FAQ
- Does the $124 stop after cap?
- No. It applies to every closing, whether you have capped or not.
- Is the $105 charged every month?
- Yes, all 12 months ($1,260 a year).
- What’s in the $124?
- The $75 transaction fee plus $49 E&O.
- When do split and royalty stop?
- When you’ve paid $16,000 in company split and $3,000 in royalty, $19,000 combined, for the year.