What this calculator does
A commission calculator works out how much a salesperson earns on a sale, by multiplying the sale amount by an agreed commission rate. It applies to any commission-based role: retail sales, wholesale accounts, insurance policies, car sales or anything else where pay is tied to a percentage of what was sold, rather than to any single industry.
The part people get wrong is mixing up the commission rate with the take-home percentage. A 10% commission rate on a $5,000 sale is $500, not $5,000 minus 10%. If there is also a base salary or retainer for the period, that gets added on top of the commission, not folded into the rate.
The formula
Multiply the sale amount by the commission rate to get the commission earned. If there is a base pay or salary for the period being measured, add it to the commission to get total pay for that period.
| Term | Meaning |
|---|---|
| Sale amount | The value of the sale the commission is calculated on, before the commission is deducted. |
| Commission rate | The agreed percentage of the sale amount paid to the salesperson. |
| Base pay | Any fixed salary or retainer paid regardless of sales, added on top of commission. |
The inputs explained
| Field | What to enter |
|---|---|
| Sale amount ($) | The total value of the sale, or the sum of sales, the commission is being calculated on. |
| Commission rate (%) | The commission rate agreed for this sale, as a percentage. |
| Base pay for the period (0 if none) ($) | Any base salary or retainer for the same period, entered as 0 if pay is commission-only. |
When to use it
Commission-only sales roles
Some sales jobs pay purely on results: enter the sale amount and rate, leave base pay at zero, and the commission earned is the whole of the pay for that sale.
Base plus commission structures
Many roles pay a smaller guaranteed base alongside commission. Entering the base pay alongside the sale and rate shows total pay for the period, not just the variable part.
Checking a payslip or commission statement
If a commission statement lists a sale amount and a rate, recalculating independently confirms the commission paid matches what was agreed.
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How commission earned changes with the rate on a $5,000 sale
The same $5,000 sale, across a range of commission rates.
| Commission rate | Commission earned | Total pay (commission + base) |
|---|---|---|
| 2% | $100.00 | $100.00 |
| 5% | $250.00 | $250.00 |
| 7.5% | $375.00 | $375.00 |
| 10% | $500.00 | $500.00 |
| 15% | $750.00 | $750.00 |
| 20% | $1,000.00 | $1,000.00 |
How commission earned changes with sale size at a fixed 10% rate
A fixed 10% rate applied to a range of sale amounts.
| Sale amount | Commission earned | Sale amount |
|---|---|---|
| $1,000 | $100.00 | $1,000.00 |
| $2,500 | $250.00 | $2,500.00 |
| $5,000 | $500.00 | $5,000.00 |
| $10,000 | $1,000.00 | $10,000.00 |
| $25,000 | $2,500.00 | $25,000.00 |
| $50,000 | $5,000.00 | $50,000.00 |
Questions
Is this the same as real estate commission?
The maths is the same, sale amount times rate, but real estate commission usually has its own conventions, such as splitting the rate between listing and selling agents. For a property sale specifically, the real estate commission calculator is set up for that case.
What is a typical commission rate?
It varies enormously by industry, product margin and whether there is also a base salary, from under 1% on high-value wholesale deals to 20% or more on some retail or door-to-door sales. There is no single benchmark worth quoting, so use the rate actually agreed in your contract.
Does commission get taxed differently to a salary?
In most places commission is taxed as ordinary income, though how much is withheld from any single payment can differ depending on payroll rules. Check with a payroll or tax professional for how it is treated where you are.
How do tiered commission structures work?
Some plans pay a higher rate once sales pass a threshold, for example 8% up to a target and 12% above it. This calculator handles a single flat rate; a tiered plan needs the relevant tier applied to each portion of sales separately.
For a sale amount and rate specific to property, see the real estate commission calculator. To work out dollar profit after all costs on a sale, see the profit calculator.