Estimate mortgage loan officer commission by average loan size, units per month, basis points per loan, and split.
Model MLO commission from the four inputs that actually drive comp: average loan size, monthly units, basis points per loan, and your split with the branch or brokerage.
Mortgage loan officers are almost always paid on production. The two most common structures are basis-point (bps) plans — a fixed percentage of each loan amount — and flat-dollar per-file plans. This calculator uses the bps structure, which covers the majority of retail and broker channel comp plans.
Gross commission per loan equals loan amount × (bps ÷ 10,000). One hundred basis points equals one percent. A $400,000 loan at 100 bps produces $4,000 in gross commission before any split.
Monthly gross equals gross-per-loan × monthly units. Annual gross equals monthly gross × 12. The calculator shows both gross (before split) and net (after your split with the branch, brokerage, or team).
Some W-2 retail plans include a base draw, quarterly bonus, or team override. Those vary by employer and would double-count against your bps if added generically. Use the bps result as the production floor, then layer any additional guaranteed comp your offer letter specifies.
Retail bps vary widely by employer and channel. Broker-channel LOs typically see higher bps because the broker pays overhead out of the same fee; retail LOs typically see lower bps but may have a base draw or benefits. Verify with your comp plan document.
Yes. Regulation Z §1026.36 prohibits compensation that varies based on transaction terms other than loan amount, restricts dual compensation, and requires payment tracking. Structure and disclosures matter.
In many retail and broker shops, the LO receives a percentage of the total bps generated and the branch/brokerage keeps the rest to cover overhead, processing, and profit. The split slider models that.
Base salaries are employer-specific and would distort the production-side math. Add any guaranteed base separately when comparing offers.