Income Simulator · Real Estate
See how much you could make as a New York real estate professional
Model closings, average sale price, broker splits, expenses, and taxes to estimate your potential take-home pay.
Scenario presets
Your assumptions
Start with a preset or change the few numbers you know. Everything else uses sensible defaults, and advanced assumptions are optional.
Number of sides you personally close in a year (one side per deal).
Average sale price for the deals you close in your market.
Typical buyer/listing side commission (e.g., 2.5%).
Percent you keep after brokerage split (before team split).
Optional advanced assumptions
Use this if you want to fine-tune taxes, fees, splits, or other detailed costs.
Lead gen, ads, open house costs, etc.
A simple planning estimate (not tax advice).
Percent of gross commissions paid to referral sources.
Percent you keep after team split (if applicable).
If your brokerage caps its portion of your split, enter the annual cap amount.
Per-transaction fees charged by brokerage/transaction coordination.
Desk fees, association fees, CRM fees, etc.
MLS, NAR/board dues, software, etc.
Optional catch-all for any other annual expenses.
Estimated results
Net (annual)
$74,550.00
Net (monthly): $6,212.50
Gross (annual)
$165,000.00
Expenses: $58,500.00 · Taxes: $31,950.00
Breakdown
| Gross commission income | $165,000.00 |
| Brokerage split | $49,500.00 |
| Marketing | $6,000.00 |
| Tools & dues | $2,000.00 |
| Other expenses | $1,000.00 |
| Estimated taxes | $31,950.00 |
Most impactful levers
Higher average price
A ~10% increase in average price changes your estimated net by about $8,085.
More transactions
One additional closing per year changes your estimated net by about $6,738.
Better split
Improving your brokerage split by 5 points changes your estimated net by about $5,775.
Estimates only. This simulator is for informational purposes and is not financial or tax advice. Actual results vary by market, brokerage policies, and individual performance.
How this calculator works
Real estate income is mostly a function of (1) how many sides you close, (2) the average price point you work in, (3) the commission rate on your side of the transaction, and (4) how much of that commission you keep after splits, fees, and business expenses.
The simulator estimates your gross commission income (GCI), then applies common deductions in the order they typically happen: referral fees (if any), brokerage split (with an optional annual cap), team split (if you’re on a team), per-transaction fees, and ongoing business expenses like marketing and tools.
Finally, it applies a simple tax estimate using an effective tax rate you can edit. It’s not tax advice—just a practical way to compare scenarios and understand the difference between gross income and take-home pay.
If you’re exploring New York real estate as a career, this is a useful “back of the napkin” tool for answering questions like: How many closings do I need to hit my target net income? What happens if I join a team? How much does marketing spend change my take-home?
Quick tips
- Start with closings, then refine average price and split.
- Use Advanced for caps, fees, team split, and recurring costs.
- Run three scenarios (conservative / typical / aggressive) and compare net.
- Use “Copy share link” to save your assumptions.
Key inputs that drive your income
You can change every assumption, but a few inputs matter more than the rest. If you want a fast, realistic estimate, focus on these first and then fine-tune the details in Advanced.
Closings per year (sides) is the main driver. The model treats one closed side as one unit. If you close 10 deals and represent both buyer and seller on 2 of them, that would be 12 sides.
Average sale price and commission rate (your side) set your gross commission income. Defaults are intentionally conservative; adjust them to match the neighborhoods and property types you expect to work in.
Broker split (you keep) and team split (you keep) determine how much of your commission you actually take home before expenses. If your brokerage has a cap, add it—your net can improve meaningfully after the cap is reached.
Marketing spend, tools/dues, and other recurring costs can matter a lot in low-volume scenarios. Many new agents underestimate these, so consider using a “worst case” and “best case” expense set to see how sensitive your net is.
Estimated effective tax rate is a simple planning input applied to net income before taxes. If you’re unsure, it’s fine to start with the default and adjust later after you talk to a tax professional.
Example scenarios to try
One of the best ways to use an income calculator is to compare scenarios instead of obsessing over a single number. Start with a preset, then change only one lever at a time so you can see what moves your take-home pay.
First year (conservative)
Lower closing volume while you learn the process. Keep expenses realistic so you can plan cash flow.
Steady year (typical)
Consistent closings with stable spend. Great for setting a baseline business plan and weekly activity targets.
Growth year (aggressive)
Higher volume with higher lead-gen spend. Useful for evaluating whether the extra spend is worth it in your net.
How to improve your net income (practically)
Your net income improves when you close more sides, increase your average price point, improve your effective split, or reduce recurring expenses. The simulator includes “insights” that estimate the impact of small changes so you can prioritize.
- Start with volume: Even one additional closing per year can move your net meaningfully, especially when fixed expenses are already covered.
- Know your splits and fees: A slightly better split (or reaching a cap earlier) can be worth more than a big jump in ad spend.
- Budget for the business: Tools, dues, and marketing are real. Plan for them so your “net” isn’t a surprise.
- Run cash-flow scenarios: If you’re starting in New York, consider a lower-volume first year with a higher-volume second year, and use the share link to keep both scenarios.
Glossary
- Side
- One side of a transaction. Buyer representation is one side; listing representation is one side.
- GCI (gross commission income)
- Your commission income before splits, fees, expenses, and taxes.
- Broker split
- The portion of commission you keep after the brokerage split (often written as “70/30”, meaning you keep 70%).
- Cap
- An annual limit on how much the brokerage takes from your commissions. After the cap, you may keep more.
- Referral fee
- A percentage of your commission paid to a referral source (for example, a relocation company or another agent).
- Effective tax rate
- A simplified “all-in” percent used to estimate taxes on net income before taxes. This is for planning, not tax advice.
FAQ
Is this a guarantee of what I will make?
No. This is an estimate based on assumptions you control. Actual earnings vary by market, brokerage, experience, and many other factors.
Does “closings per year” mean deals or sides?
This calculator uses “sides” (one side per deal). If you represent both buyer and seller on a deal, that would count as two sides.
What commission rate should I use?
Use a rate that is realistic for your market and your side of the transaction. Commission is negotiable and can vary by area, property type, and how the transaction is structured.
What does “broker split (you keep)” mean?
It is the percent of your commissions you keep after the brokerage split. Team splits and other fees can further reduce take-home pay.
What is a brokerage cap?
Some brokerages cap the total amount they take from your commissions in a year. After you reach the cap, your effective split can improve. Enter a cap in Advanced if your brokerage uses one.
Does this include rentals, bonuses, or salary?
This model focuses on commission income from closed sale transaction sides. You can approximate other income by increasing closings or average price, but it won’t be a perfect match.
Why are there expenses if I “pay nothing out of pocket” on a team?
Even team agents typically have some expenses (tools, dues, fees, marketing). If your team covers certain costs, set those expense inputs to $0 to reflect your arrangement.
How is tax calculated?
This uses a simple effective tax rate you can adjust. It is a planning estimate and not tax advice.
Can I save or share my scenario?
Yes. Use “Copy share link” to generate a URL that includes your assumptions. When you open that link later, the simulator will restore your inputs.