Commission Calculator
Sales commission is a percentage of sales paid to the person who made them. It may be a flat rate or tiered.
How to use the commission calculator
Enter the sales amount, the commission rate and any base pay for the period. The calculator shows the commission and total earnings. To find the sales needed for a target income, enter the target in Total earnings and press × on Sales amount.
Commission formulas
Commission = Sales × Rate · Total pay = Base + Commission
Commission chart
| Sales | 2% | 5% | 8% | 10% | 15% |
|---|---|---|---|---|---|
| 1,000 | 20 | 50 | 80 | 100 | 150 |
| 5,000 | 100 | 250 | 400 | 500 | 750 |
| 10,000 | 200 | 500 | 800 | 1,000 | 1,500 |
| 25,000 | 500 | 1,250 | 2,000 | 2,500 | 3,750 |
| 50,000 | 1,000 | 2,500 | 4,000 | 5,000 | 7,500 |
| 100,000 | 2,000 | 5,000 | 8,000 | 10,000 | 15,000 |
| 500,000 | 10,000 | 25,000 | 40,000 | 50,000 | 75,000 |
Common commission structures
| Structure | How it works |
|---|---|
| Straight commission | Pay is only commission — no base |
| Base + commission | Fixed salary plus a percentage of sales |
| Tiered | Rate rises above targets (e.g. 5% up to 50,000, 8% above) |
| Gross margin commission | Paid on profit, not revenue |
| Draw against commission | Advance paid, then deducted from later commission |
Tiered example
5% on the first 50,000 and 8% above it, on sales of 80,000:
- First tier: 50,000 × 5% = 2,500
- Second tier: 30,000 × 8% = 2,400
- Total commission = 4,900 (an effective 6.1%)
For tiers, run the calculator once per tier and add the results.
Commission on margin
Paying on gross margin rather than revenue stops salespeople discounting heavily to close deals. Check whether your plan pays on invoice value, collected cash or margin.
Frequently asked questions
How do I calculate commission?
Multiply the sale amount by the commission rate. 5% of 50,000 is 2,500.
How do I find the commission rate?
Divide the commission by the sale amount. 1,500 on 30,000 is a 5% rate.
How much do I need to sell to earn a target?
Enter your target as Total earnings, then press × on Sales amount.
What is a typical real estate commission?
It varies by country. In India brokers often charge 1–2% of the property price; in the US total commissions have traditionally been around 5–6%, split between agents.