Short answer: Budget your real estate business by splitting every commission check the day it lands: a set percentage for taxes, a set percentage for business expenses, and the rest for your pay. Run all business spending through one business account and one business card, and review a profit and loss statement every month. Build a reserve of several months of expenses before you raise your spending, and keep only the costs that lead to income.
By D.J. Paris, host of Keeping It Real with D.J. Paris. Updated November 2026.
Why do so many agents struggle with money even in good years?
Because the industry talks about revenue and almost never about cost. Quinn Driscoll, a CPA and money management coach for real estate agents who founded Value Gal in the Twin Cities, put it this way on our show: agents share their gross commission income, but “nobody talks about the fact that you have to spend a lot of money to make a lot of money” (May 2023, at 12:52).
The number-one mistake she sees is simple:
“I think the first thing in the number one thing is spending the commission check before it even hits the bank.”
Quinn Driscoll, What Real Estate Agents Should Be Doing Right Now To Manage Their Money Effectively (May 2023, at 30:06)
A budget decides where the money goes before the check arrives.
What do real estate agents actually spend money on?
Dr. Erin Helle, a Realtor and coach who hosts our Grow With Me series, lists the usual categories: “advertising costs, professional fees, office supplies, technology subscriptions, and travel expenses.” and says to “meticulously track and categorize these expenses” (July 2024, at 05:44).
Use these as the lines on your budget:
| Category | What goes in it | Your monthly amount |
|---|---|---|
| Brokerage costs | Desk or monthly fees, transaction fees, anything your broker bills you | |
| Dues and licensing | Association and MLS dues, license renewal, continuing education | |
| Technology | CRM, website, phone, software subscriptions | |
| Marketing and advertising | Ads, mailers, signs, video, client events | |
| Professional fees | CPA, bookkeeper, attorney, coaching | |
| Car, travel and meals | Mileage, conferences, business meals | |
| Office and supplies | Home office, supplies, lockboxes | |
| Help | Assistant or transaction coordinator |
Don’t guess. Quinn’s advice is to start by looking back at what you actually spent last year.
How should you split each commission check?
With a percentage system you set once and follow every time. Quinn’s starting point for smaller businesses:
“A percentage based system to allocate each and every one of those commission checks that’s coming in. So it depends on the size of your business revenue wise, but for the smallest businesses if you’re under 250,000 in revenue. What I suggest starting with is about 15% for tax savings and target 30% for for your business expenses and 50% to pay yourself.”
Quinn Driscoll, What Real Estate Agents Should Be Doing Right Now To Manage Their Money Effectively (May 2023, at 20:20)
Here’s what that looks like on one check. This is example math, not a benchmark.
| Bucket | Quinn’s target | On an example $10,000 check |
|---|---|---|
| Tax savings | 15% | $1,500 |
| Business expenses | 30% | $3,000 |
| Your pay | 50% | $5,000 |
| Not yet assigned | 5% | $500 |
Her three targets add up to 95%, so the last 5% is yours to assign. She also makes a key distinction: the 50% is what’s available to pay yourself, not what you take out every time. You set a steady monthly amount. In her example, if you pay yourself $5,000 a month and you have a big month, the extra stays put “until you actually need it maybe the next month” (at 22:08). That is how one budget handles both good and slow months. For more on smoothing those swings, see how top agents avoid feast-or-famine years.
How much should a real estate agent set aside for taxes?
The guests we’ve interviewed use 15% to 20% as a starting point, and every one of them says to confirm your number with a tax professional. Quinn starts small businesses at about 15%. Megan Walters, co-founder of the Walters Team at eXp in Columbia, Missouri, who ranks in the top 1% of agents nationwide, takes 20% off the top and moves it to a separate tax account. Her rule is to “act like it doesn’t exist” (September 2026, at 53:03).
Taxes also come due during the year, not just in April. Deni Baldwin, a CPA with ProVision Wealth in Arizona, explained on our show that “the IRS wants their money every quarter,” and named the dates: April 15th, June 15th, September 15th and January 15th (November 2024, at 39:56). The tax account is where those payments come from.
Dr. Helle’s advice is to stop doing taxes and start planning them. Business owners “plan for taxes. They don’t just do their taxes.” On hiring help: “I promise you if you find the right one, they will cost you much less than they will save you” (July 2024, at 10:04 and 10:29).
How do you track real estate business expenses?
Step 1: Separate business and personal money
Quinn’s first job for every client is separating the accounts: “separate your business and your personal finances and have that dedicated business account and dedicated business credit card” (at 14:12). When every business cost runs through one account and one card, tracking is mostly done for you.
Step 2: Categorize every month
It doesn’t need to be fancy. Quinn says downloading the month’s transactions to Excel and labeling them is a fine start. Dr. Helle’s warning: “if you are not tracking your expenses, your money will disappear” (at 07:39).
Step 3: Read a monthly profit and loss statement
Brandon Green founded Alchemy of Money, a bookkeeping, tax and financial services company for real estate professionals, after co-founding and leading Keller Williams Capital Properties in Washington, D.C. His point: your bank balance doesn’t tell you whether you’re profitable. A P&L does:
“Let’s pull all of your income expenses together and create a report that tells you how much money you’re really making.”
Brandon Green, Financial Strategies For Real Estate Agents (May 2025, at 28:13)
He also draws a line most agents miss. “Most people have a profit and loss statement for tax purposes only,” he said. What he means is “a living document that gets updated on a regular basis that gets studied and it gets adjusted to” (at 31:11 and 31:43). That only works with “good bookkeeping and an accurate statement of income and expenses reconciled monthly” (at 23:00).
Look at each expense line as a percentage of your gross commission income. For which numbers to watch alongside your P&L, see the 5 metrics top producers track.
How do you decide whether an expense is worth it?
Ask whether it leads to income. Dr. Helle’s test:
“You need to look at what you’re spending and make sure that it adds up to an income-producing activity. Make sure that it’s leading to something that’s going to turn into more income, especially when it comes to advertising.”
Dr. Erin Helle, What Does Financial Freedom Look Like For Real Estate Agents? (July 2024, at 07:22)
Timing matters too. “If you know that you don’t have any closings in the next two months and your, your checking account is pretty much at zero, then don’t go spending a bunch of money on a conference or don’t go spending a bunch of money on anything” (at 08:47). Quinn’s tool for knowing this is a commission pipeline: “what deals are closing in the next two months and how much are you expecting to get from that,” updated weekly (at 31:05).
Then review old spending, not just new. Quinn calls this looking at the return: “if you are running the same ads that you ran three years ago that did great for you. And you haven’t looked at it lately like, am I actually getting any leads from these ads” (at 37:30). Then cancel the subscriptions you no longer use.
When should you reinvest in growth?
After the tax account and the reserve are funded. Megan Walters explained the order she followed: taxes first, then a fixed budget for business and personal bills, then savings. Only after that did her marketing budget go up.
“I made sure and built a reserve account. And so I have a reserve account for four months of expenses between business and personal. So if I don’t show the house, I’m perfectly fine for four months.”
Megan Walters, 66 Deals at 28 with Zero Bought Leads (September 2026, at 53:29)
After that, the surplus went into marketing. How much to put there gets its own guide: how much a real estate agent should spend on marketing.
One more rule from Dr. Helle: “When you have 18% credit card debt, pay that off first” (at 13:19).
What should you cut when business slows down?
Cut costs in step with your income. Brandon Green’s question for any agent in a slow year: “If your income is down right now, have you also, you know, in proportion decreased or at least looked at your expenses” (at 31:52). A monthly P&L lets you see it early.
When should you hire a bookkeeper or CPA?
Brandon Green offered rough stages by gross commission income (at 49:54 to 50:51):
- Up to $250,000: mostly do-it-yourself, except possibly your taxes.
- $250,000 to about $1.5-2 million: add a bookkeeper and a strategic CPA.
- Approaching $2 million: add a certified financial planner.
- $3 million and up: consider a fractional CFO.
Frequently asked questions
What percentage of commission should a real estate agent spend on business expenses?
Quinn Driscoll’s starting target for businesses under $250,000 in revenue is 30% for business expenses, with 15% for taxes and 50% for your pay. Adjust it once you have a year of your own numbers.
How much should a real estate agent save for taxes?
Guests on Keeping It Real with D.J. Paris use 15% to 20% of each check as a starting point and move it to a separate account. Your CPA should set your actual number, and remember that estimated taxes are due quarterly.
Do I need a separate bank account for my real estate business?
Yes. Quinn Driscoll’s first step is a dedicated business bank account and one business credit card, so business and personal spending never mix.
How often should I review my real estate budget?
Check your commission pipeline weekly and your profit and loss statement monthly.
How much should a real estate agent keep in reserve?
Megan Walters keeps four months of business and personal expenses in a reserve account and only raised her marketing budget after it was built.
Listen to the full episodes
- What Real Estate Agents Should Be Doing Right Now To Manage Their Money Effectively, with Quinn Driscoll
- Financial Strategies For Real Estate Agents, with Brandon Green
- 66 Deals at 28 with Zero Bought Leads, with Megan Walters
- What Does Financial Freedom Look Like For Real Estate Agents?, with Dr. Erin Helle
- Tax Saving Secrets Of Top Real Estate Agents, with Deni Baldwin
Related guides: How to Write a Real Estate Agent Business Plan That Actually Gets Used.
Keeping It Real with D.J. Paris is a podcast for real estate agents, with more than 790 episodes of interviews with top-producing agents, coaches and industry leaders. Here’s how to listen.