Enter annual rent, then choose a fee method for the scenario: one month of rent, an entered percentage of annual rent, or an entered fixed amount. The worksheet compares each selected fee with annual rent by displaying an effective annual rate. It does not choose a method or assert that any fee is customary or legally due.
Three distinct methods
- One month:
commission=annual rent/12. - Entered percentage:
commission=annual rent×percentage/100. - Entered fixed amount: commission equals the amount entered.
The effective annual rate is commission divided by annual rent. When annual rent is zero, the displayed effective rate is zero rather than a division by zero.
Example comparison
With $12,000 annual rent:
- one month is
12,000/12=$1,000.00, an effective annual rate of 8.33%; - an entered 10% fee is
12,000×0.10=$1,200.00, an effective rate of 10%; - an entered fixed fee of $750 remains $750.00, or 6.25% of annual rent.
Avoid mixing fee bases
A percentage here is a percentage of annual rent, not monthly rent. A common mistake is to convert annual rent to monthly rent and then apply an annual-rent percentage, understating the fee by a factor of 12. Another is to enter a one-month amount in the fixed branch and assume that branch confirms the lease’s monthly rent.
Use only a method that matches your scenario. The worksheet does not interpret an agreement or determine enforceability, who owes the fee, taxes, disclosures, or local legal requirements.
For a commission calculated from a property sale price instead, use the real estate commission calculator; that calculator uses a different fee base.
Arithmetic boundary
The three equations are transparent publisher arithmetic based on the method selected by the user. They do not establish a contractual or legally due amount.
Keep the fee method with the amount
Save whether the fee is one month’s rent, a custom percentage, or a custom amount. Compare those methods with the same annual rent. The calculation implements your selected basis; it cannot determine which method your rental agreement requires.