Free Commission Calculator
Calculate your earnings. Determine sales commissions and total pay based on percentage rates and optional base salaries.
Last Updated: 15 Jan 2026
Sales Details
Calculate earnings
Enter sales and commission rate
Understanding Sales Commission
Sales commission is a form of variable compensation where employees earn a percentage or fixed amount based on the sales they generate. It's designed to incentivize performance, reward success, and align employee interests with business growth. Commission structures are common in industries like real estate, retail, automotive sales, insurance, and B2B sales.
Understanding how commission is calculated helps sales professionals plan their income, negotiate compensation packages, and set realistic sales targets. It also helps employers design fair and motivating compensation structures that drive results.
Why Use Our Free Commission Calculator?
Instant Calculations
Calculate commission and total earnings instantly as you adjust sales amounts and rates. No complex math needed—get results immediately.
Income Planning
Plan your income by calculating potential commissions on different sales volumes, helping you set realistic financial goals.
Compensation Analysis
Compare different commission structures, evaluate job offers, and understand total compensation including base pay and commissions.
Common Use Cases for Commission Calculation
Sales Professionals
Real Estate Agents
Calculate commission on property sales, accounting for broker splits and transaction fees. Essential for understanding earnings on each sale.
Retail Sales
Calculate commission on product sales, especially for high-value items like electronics, furniture, or luxury goods where commission rates vary.
B2B Sales
Calculate commission on enterprise deals, software sales, or service contracts where commission structures can be complex with tiers or accelerators.
Business Planning
Compensation Design
Design commission structures that motivate sales teams while maintaining profitability. Calculate costs of different commission rates.
Budget Planning
Estimate total commission costs based on projected sales, helping you budget for sales team compensation and plan for growth.
Performance Analysis
Analyze sales performance by calculating commissions earned, comparing individual and team performance, and identifying top performers.
Common Commission Structures
Straight Commission
Income is 100% based on sales performance.
- High risk, high reward
- No guaranteed income
- Common in real estate
- Unlimited earning potential
Base Salary + Commission
Combines guaranteed income with performance bonuses.
- Financial security + incentives
- Common in tech sales
- Lower risk than straight commission
- Balanced compensation model
Tiered Commission
Commission rate increases with sales volume.
- Rewards high performers
- Motivates increased sales
- Example: 5% up to $10k, 7% above
Draw Against Commission
Advance payment that's deducted from future commissions.
- Provides steady cash flow
- Must be repaid from commissions
- Common in insurance sales
Frequently Asked Questions
How is commission calculated?
Commission is calculated by multiplying the total sales amount by the commission percentage (Rate / 100). For example, $1,000 sales at 10% commission = $100.
How is commission typically paid?
Commission is usually paid after the sale is completed, customer payment is received, or a specific waiting period passes. Payment frequency varies—monthly, bi-weekly, or per transaction.
What's a typical commission rate?
Rates vary widely. Real estate: 2-3% per side. Retail: 1-10%. B2B sales: 5-20%. SaaS: 5-15%. Rates depend on product value, sales cycle, and industry standards.
Can I add a base salary?
Yes, our calculator includes an optional 'Base Pay' field so you can see your total earnings (Base + Commission) in one view.
Do commissions get taxed differently?
Commission is taxed as ordinary income, same as salary. However, withholding rates might differ. As an independent contractor, you may need to pay estimated quarterly taxes.
Can commission be clawed back?
Yes, if a customer cancels or returns a product, companies often have clawback provisions to recover previously paid commissions. Always check your agreement.
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