BizBrokerMatch
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Business Broker Fee Calculator

Compare a flat commission against Lehman, Double Lehman, and a custom schedule — on your actual sale price, side by side. See the total fee, effective rate, and what you'd net under each.

The final agreed sale price of the business.

$

Defaults to a typical rate for this deal size — edit to match a specific quote.

%
Modified Lehman — custom tiers

There's no single standard "Modified Lehman" schedule — every broker customizes it. Edit these to match a specific proposal. Defaults shown are one common lower-middle-market example, not a rate BizBrokerMatch recommends.

First $1M
%
Second $1M
%
Third $1M
%
Fourth $1M
%
Above $4M
%
Side-by-side comparison
StructureTotal FeeEffective RateNet Proceeds
Flat 8%$120,0008.0%$1,380,000
Lehman (5-4-3-2-1)Lowest fee$70,0004.7%$1,430,000
Double Lehman (10-8-6-4-2)$140,0009.3%$1,360,000
Modified Lehman (custom)$110,0007.3%$1,390,000

Estimates only — actual broker agreements may include minimum fees, retainers credited at close, or tail provisions not reflected here. Always get the exact fee structure in writing before signing a listing agreement.

Why Fee Structure Is Worth Comparing

Most sellers only ever see one number: whatever their broker quotes. But the same broker fee — say, 10% — can mean very different amounts depending on whether it's applied flat across the whole sale price or stepped down in tiers as the deal gets larger. On a $3M deal, a flat 10% commission is $300,000. The classic Lehman Formula on the same deal is $120,000. Double Lehman lands in between at $240,000.

Neither structure is universally "better" — smaller deals often see little difference, and some brokers won't negotiate off a flat rate at all. But knowing the real dollar difference before you sign a listing agreement puts you in a much stronger position to ask why.

Methodology — how every number is calculated

Flat % = Sale Price × Rate. Defaults to a typical rate for the entered deal size (12% under $250K, 10% for $250K–$1M, 8% for $1M–$5M, 5% for $5M–$20M, 3% above $20M) — fully editable.

Lehman Formula = 5% of the first $1M + 4% of the second $1M + 3% of the third $1M + 2% of the fourth $1M + 1% of everything above $4M. The original 1960s Lehman Brothers scale.

Double Lehman = the same tier structure with every rate doubled: 10% / 8% / 6% / 4% / 2%. The more commonly used version for Main Street deals under $5M.

Modified Lehman = a fully editable version of the same tiered structure — there is no single standard schedule, so this lets you model a specific broker's actual proposed terms.

Effective Rate = Total Fee ÷ Sale Price. Net Proceeds = Sale Price − Total Fee.

Estimates only — real listing agreements may include minimum fees, retainers credited at closing, or tail provisions this calculator doesn't model. See our full guide to broker fees for what else to check before signing.

Frequently Asked Questions

What is the Lehman Formula for broker fees?

A tiered fee structure dating to a 1960s Lehman Brothers standard: 5% on the first $1M, 4% on the second, 3% on the third, 2% on the fourth, and 1% above $4M. The blended rate falls as deal size grows.

What is Double Lehman?

Every Lehman tier doubled: 10% / 8% / 6% / 4% / 2%. Most brokers use this version, not the original, for deals under $5M — the original scale is generally considered too low for smaller transactions.

What is a Modified Lehman formula?

Any broker-customized version of the tiered structure — there's no single standard "Modified Lehman." Always get the exact schedule in writing rather than assuming a standard version applies.

Is a flat percentage or tiered fee better for sellers?

Depends on deal size — they're often close on smaller deals, and tiered structures increasingly favor the seller as the deal gets larger, since the marginal rate drops on each additional tier while a flat rate doesn't. Compare both on your actual numbers.