Commission Calculator

Calculate your sales commission with simple, tiered, or base salary plus commission structures. Plan your earnings.

Total sales or revenue generated

Rate for sales above Tier 2

Simple: Commission = Sales * Rate\n\nBase + Commission: Total = Base Salary + (Sales * Rate)\n\nTiered:\nTier 1: Sales₁ * Rate₁\nTier 2: Sales₂ * Rate₂\nTier 3: Sales₃ * Rate₃\nTotal = Sum of all tiers
Example 1 (Simple):\nSales: $100,000\nRate: 5%\nCommission = $100,000 * 5% = $5,000\n\nExample 2 (Base + Commission):\nBase: $3,000/month\nSales: $100,000\nRate: 5%\nCommission = $5,000\nTotal Pay = $3,000 + $5,000 = $8,000\n\nExample 3 (Tiered):\nSales: $120,000\nTier 1: $0-$50k at 5%\nTier 2: $50k-$100k at 7%\nTier 3: $100k+ at 10%\n\nTier 1: $50,000 * 5% = $2,500\nTier 2: $50,000 * 7% = $3,500\nTier 3: $20,000 * 10% = $2,000\nTotal = $8,000

How is commission calculated?

Commission = Sales Amount * Commission Rate (%). For example, $10,000 in sales at 5% commission = $10,000 * 0.05 = $500. Tiered commission uses different rates for different sales levels. Some structures include base salary plus commission.

What are common commission structures?

Straight commission: % of sales only (no base). Base + commission: guaranteed salary + % of sales. Tiered: higher % at higher sales levels. Gross margin: % of profit not revenue. Draw against commission: advance repaid from future commissions. Choose based on industry and role.

What is a good commission rate?

Varies by industry. Real estate: 5-6% split between agents. Car sales: 20-25% of profit. Software/SaaS: 5-10% of contract value. Retail: 1-5%. Insurance: 5-15% first year, 2-5% renewals. B2B sales: 5-10%. Higher rates for harder sales or lower base pay.

How do tiered commission rates work?

Higher sales = higher commission rate. Example: 0-$50k = 5%, $50k-$100k = 7%, $100k+ = 10%. If you sell $120k: ($50k * 5%) + ($50k * 7%) + ($20k * 10%) = $2,500 + $3,500 + $2,000 = $8,000 total commission.

Are commissions subject to taxes?

Yes, commissions are taxable income. Employers withhold federal, state, and FICA taxes. Commission checks may have higher withholding (supplemental wage rate ~22-37%). You pay same total tax as regular wages, but withholding timing differs. Track for tax planning.