Accounting Software - Nov 5, 2026
Real estate agents track commission income by keeping one record for every deal: the commission earned, any brokerage deductions or referral fees, the net amount received and the date it was paid. Marking each commission as pending or received makes your income easy to review, forecast and share with an accountant.
Unlike a salary, commission income arrives deal by deal. A commission can be expected for weeks after a contract is signed, then paid with deductions already taken out. Without a clear record, it is hard to tell what you have earned, what is still pending and what actually reached your account.
This guide answers a common question: how do real estate agents track commission income? You will learn what to record, how gross commission, brokerage deductions, referral fees and net commission fit together, how to separate pending commissions from received ones, and how to set up Realtor commission tracking in AgentXpense. It is written for real estate agents in the United States and Canada.
How Do You Track Commission Income?
The simplest method is to follow the same six steps for every deal:
Create a record for the deal. Note the property address, deal type (buyer, seller or lease), clients and status.
Track the commission as pending once the deal is under contract. Pending commissions are income you expect, not income you have received.
Record the payment when it arrives. Enter the net amount received and the date it was received.
Keep the parts of the commission separate. Record the commission amount, brokerage deductions and any referral fees as individual figures.
Organize your commission statements by deal. Each statement then supports the record it belongs to.
Link expenses to the deal and review regularly. Check your totals monthly and again at year-end.
AgentXpense follows this same flow on the deal itself. When you close a deal and save its commission details, the commission income is created automatically and appears in your Commissions view and financial reports.
Key Takeaways
Strong commission income tracking starts with one record per deal, not one list of deposits.
Gross commission, brokerage deductions, referral fees and net commission each answer a different question, so record them separately.
Pending commissions are expected income. Received commissions are income that has been paid.
Connecting commissions and expenses to the same deal shows what each transaction earned and what it cost.
What Commission Income Should You Record?
Good Realtor commission tracking uses the same set of details for every deal. When each record follows the same pattern, your commission statements, bank deposits and reports are easy to match later.
What to Record | Why It Matters |
|---|---|
Property address and deal type (buyer, seller or lease) | Ties the commission to a specific transaction |
Client names | Keeps the people involved easy to find |
Deal status (active, pending or closed) | Shows which commissions are expected and which are earned |
Commission amount | Records what the deal earned before deductions |
Brokerage deductions | Shows the portion paid to your brokerage |
Referral fees | Keeps referral income and referral payments identifiable |
Net amount received | Records what actually reached you |
Date received | Places the income in the right period |
Tax type (inclusive or exclusive) | Keeps sales tax information consistent where it applies |
Use the figures printed on your commission statement. Brokerages structure splits and fees in different ways, so your statement is the best source for each deal.
Real estate income tracking also covers income that does not come from a closing, such as referral income. Keep it in the same system so your income totals are complete.
What Is the Difference Between Pending and Received Commissions?
Pending commissions are commissions you expect to earn from deals that are under contract or awaiting closing. Received commissions are commissions that have been paid to you. Keeping the two apart shows how much income you have already earned and how much is still on its way.
Pending Commissions | Received Commissions | |
|---|---|---|
What it means | The deal is under contract or awaiting closing | The deal is closed and the commission has been paid |
What to record | The deal, its status and the expected commission | Net pay, received date, commission amount, brokerage deduction and tax type |
Where it appears in AgentXpense | Deals module and the dashboard's commission outlook | Income → Commissions, Reports and the dashboard |
In AgentXpense, commission fields open up as soon as a deal is marked Pending, so you can enter the numbers you already know before closing. Once you close the deal and save the final details, the commission income is created automatically.
Pre-construction projects often pay commission in installments instead of one closing payment. AgentXpense supports up to four payment installments per pre-construction project, so you can record each payment, with its date and commission, as it arrives.
What Is Gross Commission?
Gross commission is the commission amount before any deductions. You can usually calculate it by multiplying the sale price by the commission rate. Agents often call the total across a period their gross commission income (GCI) and use it to measure production.
For example, a $500,000 sale with a 3% commission rate produces a gross commission of $15,000. This is an illustrative example only. Your rates and agreements will differ.
Record the gross commission on the deal it came from. Every commission is then tied to a property and a closing, and you can compare deals side by side. In AgentXpense, you enter the agent commission, with its tax type, in the commission details of the deal.
What Are Brokerage Deductions?
Brokerage deductions are the portion of your commission that goes to your brokerage, often called a split. They explain the difference between the commission a deal earned and the amount you received, so they deserve their own line in your records.
When you track brokerage deductions on every deal, you can see the full picture of each commission: what was earned, what the brokerage retained and what reached you. AgentXpense includes a dedicated brokerage deduction field in the commission details.
Some commission statements list additional fees. Record whatever your statement shows, and ask your accountant how to treat each item in your books.
How Should You Track Referral Fees?
A referral fee is a payment made when one agent refers a client to another agent. Depending on the deal, you may receive referral fees, pay them, or both.
Referral fees you receive: Track them as income. AgentXpense includes a default Referrals income category, and you can link the income entry to a deal.
Referral fees you pay: Add a note to the deal so the payment is easy to find later. How a referral fee is treated for tax purposes depends on your circumstances, so confirm it with your accountant.
Recording referral fees next to the deal they relate to keeps your commission income tracking accurate and complete.
What Is Net Commission?
Net commission is the amount you receive after brokerage deductions and any other fees. It is the figure that reaches your bank account, which is why most agents use it to plan cash flow. A simple check is to compare the net amount on your commission statement with the deposit you received.
Here is how the figures connect, using the same illustrative example:
Item | Example Amount |
|---|---|
Sale price | $500,000 |
Commission rate | 3% |
Gross commission | $15,000 |
Brokerage deduction (example 20% split) | −$3,000 |
Net commission | $12,000 |
This table is an illustration only. Your commission rate, split and fees are set by your own agreements.
AgentXpense calls this figure net pay, which is the amount you actually received. You enter it together with the received date, so your income lands in the correct reporting period.
Example: How Does One Commission Move From Pending to Paid?
Here is how a single deal looks from listing to payment when every step is recorded on the deal.
Stage | What Happens | What to Record |
|---|---|---|
Active | You take a new listing | Property address, deal type, price and linked clients |
Pending | An offer is accepted and the deal goes under contract | The new status and the commission numbers you already know |
Closed | The sale completes | The final commission amount, brokerage deduction and tax type |
Paid | The commission reaches you | Net pay and the date it was received |
Throughout | You pay for photography, staging or marketing | Each expense, linked to the same deal |
At the end of the process, the deal shows its property, client, commission breakdown and linked expenses in one place, with no second entry needed for the commission.
What Are the Best Ways to Track Commission Income?
Agents use a few common methods. Each one works, and the right choice depends on how many deals you handle and how connected you want your records to be.
Method | Best For | Keep in Mind |
|---|---|---|
Spreadsheet | Simple setups and agents who want full control of the layout | You build the columns and formulas yourself, and receipts and expenses are stored separately |
Brokerage commission statements | The official figures for each closing | They document individual payments, so a separate year-round record is still useful |
Bookkeeping software built for real estate, such as AgentXpense | Connecting commissions, deals, expenses and reports | Works best when you update deal status and commission details as each deal progresses |
Agents managing several transactions at once often value a system where status, commission and expenses live on the same deal.
Why Should You Connect Commissions to Deals?
Every commission belongs to a transaction. When commission records stay connected to deals, you get several benefits:
Clear records: Each payment is tied to a property, a client and a closing, so nothing needs to be traced back later.
A clearer cost picture: When you link expenses and income to a deal, you can answer a simple question: how much did I spend to close this transaction?
A visible pipeline: Deals organized by status show how many are active, pending and closed, and which commissions to expect from pending deals.
Cleaner reporting: Income and expenses for any date range come together in one report, which makes year-end preparation more straightforward.
No duplicate entry: Recording a commission on the deal means you do not enter it again somewhere else.
To see how this works across the whole transaction, read our guide to deal tracking software for Realtors.
What Does a Simple Commission Tracking Routine Look Like?
A short routine keeps your records accurate without taking much time:
After every payment: Record the net pay, received date and brokerage deduction, and compare the net amount with your bank deposit.
Each month: Review your pending deals, update their statuses and confirm that each commission statement is filed under the right deal.
At year-end: Set the report date range, print the financial report, export your commission records to CSV and share them with your accountant.
How Does AgentXpense Track Commission Income?
AgentXpense is bookkeeping and financial management software built for real estate agents in the United States and Canada. Its commission tracking works from the deals you already manage. Here is the workflow:
Create the deal. Choose a category (Sellers, Buyers, Leases or a custom type), then add the property address, list or purchase date, price, status, linked clients and notes.
Update the status as the deal moves. Deals are Active (in progress), Pending (under contract or awaiting closing) or Closed (completed).
Enter the commission details. For Pending and Closed deals, commission fields appear: net pay, received date, agent commission with tax type (inclusive or exclusive) and brokerage deduction.
Close the deal. When you close a deal and save its commission details, the commission income is created automatically. It appears in Income → Commissions and feeds into your reports and the dashboard.
Review the Commissions view. It lists commission income from closed deals and pre-construction payments. You can filter by commission type and amount, export to CSV and print a commission report.
Link expenses and income to the deal. From the expense or income form, tie a record to a deal to see the costs behind each transaction. Learn more about expense tracking.
Your dashboard also shows deal totals, a breakdown of closed, pending and active deals, and a commission outlook from pending deals.
For reporting, AgentXpense's financial reports show closed transactions, total income, business expenses, net income, sales tax received, sales tax on expenses and the net sales tax position for any date range you choose. You can print the report for your accountant or tax preparer.
Whether sales tax, such as GST/HST in Canada, applies to your commission depends on individual circumstances, so confirm it with a qualified tax professional. AgentXpense organizes your records for tax time, and your accountant or tax preparer remains your source for tax filing and professional advice.
Pricing and Free Trial
AgentXpense offers a 30-day free trial without requiring a credit card, and you can try deal management and reports during the trial. After the trial, the Monthly plan is $14.00 per month, and the Yearly plan is $119.88 per year, equivalent to $9.99 per month. All paid plans include the same features. See current details on the pricing page.
FAQs
How Do Realtors Track Commissions?
Realtors track commissions by recording each one against its deal. They note the commission amount, brokerage deductions, referral fees, net amount received and received date, and they mark whether the commission is pending or received. Many agents use bookkeeping software designed for real estate so these details stay organized and feed their reports.
Should Pending Commissions Be Tracked?
Yes. Tracking pending commissions gives you a clear view of the income you expect from deals that are under contract or awaiting closing. Keep them separate from received commissions, so your income records reflect only what has actually been paid. In AgentXpense, the dashboard shows a commission outlook from pending deals.
What Is Net Commission Income?
Net commission income is the amount you receive from a deal after brokerage deductions and any other fees. It is the figure that actually reaches your account. In AgentXpense, this amount is entered as net pay, together with the date you received it.
How Do Realtors Organize Commission Statements?
Many Realtors organize commission statements by deal, using the property address and closing date. The key figures from each statement, including net pay, received date, commission amount, brokerage deductions and tax type, are then recorded on the deal. In AgentXpense, you can also attach a PDF or image to income entries, such as referral income, and download receipts in a ZIP file for a selected date range.
What Is Gross Commission Income (GCI)?
Gross commission income is the total commission earned from closed transactions before brokerage deductions, referral fees and other costs. Agents use it to measure production. Comparing it with net commission shows what each deal contributed after the split.
Should I Record Commission When It Is Pending or When It Is Received?
Track both, and label each clearly. Pending commissions show expected income, and received commissions record money that has been paid. Which period an amount counts toward for tax purposes depends on your accounting method and local rules, so ask your accountant. AgentXpense records a received date for each commission.
Can I Track Commission Income in a Spreadsheet?
Yes. A spreadsheet works for simple setups when every deal uses the same columns, such as property, status, commission, brokerage deduction, net pay and received date. Software built for real estate connects those figures to your expenses, receipts and reports.
How Does AgentXpense Help Track Commission Income?
AgentXpense lets you record commission details on each deal. When you close a deal, the commission income is created automatically, appears in the Commissions view and feeds into your financial reports. You can filter, export and print the commission records.
Can I Track Pre-Construction Commission Payments?
Yes. AgentXpense supports pre-construction projects with up to four payment installments. You record each payment, with its received date and commission, as it arrives, and the commission flows to the Commissions view and your reports.
Final Thoughts
So, how do real estate agents track commission income? They record each commission on its deal, keep gross commission, brokerage deductions, referral fees and net commission separate, and label pending and received commissions clearly. With that structure, your income is easy to review during the year and easy to share at year-end.
AgentXpense brings these steps together, from deal status and commission details to the Commissions view and financial reports. To see how it works with your own deals, try AgentXpense free for 30 days. No credit card is required.
