Commission Calculator
Calculate sales commissions, fees, and commission-based earnings. Free, fast, accurate — no signup, mobile-friendly, wor
Commission Structure
🏢 Industry Examples
Commission Results
Total Earnings
Effective rate: 5.00%
Gross Commission
Before draw/deductions
Net Commission
After draw/deductions
📋 Calculation Steps
How it works
A commission calculator finds earnings based on a percentage of sales. Multiply the sale amount by the commission rate. Tiered plans apply different rates above set thresholds, and a base salary is added on top of the commission.
Commission
Commission = sale amount × rate Total pay = base + commission
- sale amount
- value of sales made
- rate
- commission percentage
Worked example
- Sales = $40,000
- Commission rate = 8%
- Commission = 40,000 × 0.08
$3,200 in commission.
Good to know
- Tiered plans pay a higher rate on sales above a threshold — check where each tier kicks in.
- Some plans pay on gross sales, others on profit or net after returns.
- Draws against commission are advances you must earn back before keeping further pay.
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Frequently Asked Questions
How is commission calculated?
Multiply the sale amount by the commission rate: a 5% commission on a $200,000 sale is $10,000. For tiered plans, apply each rate only to the portion of sales that falls within its tier, then add the pieces together.
What are the common commission structures?
Straight commission (pay is 100% commission), base salary plus commission, tiered commission (higher rates after hitting thresholds), and draw against commission (an advance recovered from future commissions). Each shifts risk differently between employer and salesperson.
What is a draw against commission?
A draw is an advance paid in low-sales periods that is recouped from later commissions. A recoverable draw must be paid back from future earnings; a non-recoverable draw acts more like a guaranteed minimum for that period.
How are commissions taxed?
In the US, commissions are ordinary wage income, but as "supplemental wages" employers often withhold federal tax at a flat 22% when paid separately from salary. That is only withholding — your actual tax is settled at your normal rate when you file.
What is a typical commission rate?
Rates vary enormously by industry: real estate commissions have traditionally run about 5–6% of the sale price split between agents, retail sales often pay 5–15%, and SaaS sales commonly pay around 8–12% of contract value. Always evaluate the rate together with the base salary and quota.