11
Commission
Calculate commission earned and total pay from a sales amount and rate.
Formula: sales amount × commission rate. Add any base pay to get total pay.
FREE CALCULATOR · BUSINESS
Commission Calculator
Whether you are in sales estimating a paycheck or a business setting a comp plan, this calculator turns a sales figure and a rate into commission and total pay.
How the commission calculator works
Whether you are in sales estimating a paycheck or a business setting a comp plan, this calculator turns a sales figure and a rate into commission and total pay.
The formula
commission = sales × (rate ÷ 100) · total pay = base + commission
Worked example
$50,000 in sales at a 6% commission rate earns $3,000. With a $2,000 base salary, total pay is $5,000.
Where this comes in handy
- Salespeople: forecast take-home from your pipeline.
- Employers: model what different rates cost at various volumes.
- Real estate: estimate agent commission on a home price.
- Freelancers: price referral fees as a share of project value.
Commission Calculator — frequently asked questions
How is sales commission usually calculated?
Multiply total sales by the commission rate as a decimal. Many plans add tiers, caps, or accelerators on top of that base formula.
What is a typical commission rate?
It ranges from 1–3% in real estate per side, 5–15% in many B2B sales roles, to 20–50%+ for some insurance and high-margin products.
What is the difference between commission and bonus?
Commission is formula-driven pay tied directly to sales volume. A bonus is usually discretionary or tied to broader targets.
Are commissions taxed differently?
In the US, commissions are supplemental wages — federally withheld at a flat 22% (up to $1M), though your actual tax depends on total income.
What is a draw against commission?
An advance the employer pays and later recoups from earned commission — a safety net, not extra pay.