Commission Calculator
Calculate commission earned from a sale amount and commission rate.
Try an example
$10,500.00
About this calculator
What Is a Commission?
A commission is pay that depends on how much a salesperson sells. Instead of — or on top of — a fixed salary, the worker earns a share of the revenue they bring in, which gives them a direct reason to sell more. In its simplest form a commission is a percentage of sales: a 3% commission on a $100 sale pays $3. This commission calculator finds any one of the three values — sales amount, commission rate or commission — when you know the other two.
The Commission Formula
Commission = Sales amount × Commission rate ÷ 100. To find the rate, divide the commission by the sales amount and multiply by 100; to find the sales needed to reach a target, divide the commission goal by the rate. A rep who earns $1,800 on $60,000 of sales is on a 3% rate, and one aiming for $3,000 at that rate needs $100,000 in sales.
Worked Example
A $350,000 sale at a 3% commission rate earns $10,500 in commission.
Common Commission Structures
- Straight commission: pay is entirely a share of sales, with no base salary.
- Base plus commission: a steady salary with a commission bonus on top.
- Tiered commission: the rate rises as sales cross higher thresholds — for example 3% up to $50,000 and 5% beyond that.
- Profit-based commission: the percentage applies to profit, not revenue, so discounting reduces the payout.
- Residual commission: ongoing payments on repeat or subscription customers.
Different structures motivate different behavior. Reducing commission when a discount is given discourages unnecessary markdowns, and paying on repeat customers rewards long-term relationships.
Where Commissions Are Common
Real estate agents, insurance and financial salespeople, car dealers, retail staff, recruiters and software sales teams are often paid at least partly on commission. If you are weighing a job offer, look at the whole package — base pay, rate, caps, the way returns and refunds are handled, and how accounts are assigned.
Planning Around Variable Pay
Commission income can swing from month to month, so build a budget around your lowest realistic month and save the surplus. Convert it to a yearly figure with the Salary Calculator, and calculate percentages of any amount with the Percentage Calculator.
Worked example
A $350,000 sale at a 3% commission rate earns $10,500 — leaving $339,500 for the seller.
Frequently asked questions
Is commission calculated before or after other fees?
This calculator applies the rate directly to the sale amount. In practice, some deals calculate commission on the net price after other deductions — check the specific agreement.
Can commission be split between multiple parties?
This calculator shows the total commission on the sale; splitting it between agents or referral parties is a separate calculation on top of this result.
