Commission Calculator

Sales commission is a percentage of sales paid to the person who made them. It may be a flat rate or tiered.

$
$50,000
$
$2,000
$
calculated$2,500
$
calculated$4,500
Type in any field to change it. Press × on a value to calculate that field instead.

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.

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