Free tool · Business brokers
What are more
listings worth?
See the potential commission from 1 to 10 more seller listings a year. Start with your average sale price.
One more listing. Then another.
Annual gross commission if each additional listing sells. Select any row.
Your selected scenario
How the commission is calculated
The Double Lehman model applies each percentage only to its portion of the sale price. It does not apply a single tier rate to the entire sale. The effective percentage is the total commission divided by the sale price.
| Portion of sale price | Rate | Commission |
|---|---|---|
| First $1,000,000 | 10% | $100,000 |
| Second $1,000,000 | 8% | $0 |
| Third $1,000,000 | 6% | $0 |
| Fourth $1,000,000 | 4% | $0 |
| Amount above $4,000,000 | 2% | $0 |
| Double Lehman total per sale | 10.00% | $100,000 |
The table shows the Double Lehman calculation at your entered average sale price.
With Custom rate selected, commission equals the full sale price multiplied by your percentage. Your custom percentage stays fixed as you change the price. Annual commission equals the per-sale commission multiplied by the number of additional listings.
Source: Investopedia: Lehman & Double Lehman formula. Commissions are negotiable. This model is an illustration, not a required industry rate. Effective rates shown are rounded; calculations use full precision.
Planning estimate only. Results are potential gross commissions, not guaranteed earnings or take-home pay. No minimum fees, retainers, co-broker splits, or service costs are included. Calculations use your average price for every modeled sale.
Answers
Questions brokers ask about this
What is the Double Lehman formula?
It is a tiered business brokerage commission: 10% of the first $1,000,000 of the sale price, 8% of the second $1,000,000, 6% of the third, 4% of the fourth, and 2% of everything above $4,000,000. Each rate applies only to its own slice of the price, so the effective percentage falls as the price rises.
Is the Double Lehman rate required?
No. Commissions are always negotiable between a broker and a seller. Double Lehman is a widely referenced model, not an industry-mandated rate. Use the Custom rate option to model whatever you actually charge.
Is this my take-home pay?
No. The calculator shows potential gross commission. It does not deduct brokerage splits, co-broker or referral fees, minimum fees, retainers, marketing costs, overhead, or taxes.
How do brokers actually get more listings?
Most sellers start with a search. If your firm is not in the Google Map Pack or named by AI assistants when an owner searches "business broker near me", those listings go to whoever is. That is the work we do on our business brokers page.
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