Flat-rate commission
Commission = Sales × RateSell $25,000 at a 6% rate and you earn $25,000 × 0.06 = $1,500. Add a $2,000 base salary for total pay of $3,500.
Flat, tiered, real estate and target sales
Commission Calculator
This commission calculator works out what you earn on any sale, from simple percentage commission to tiered plans and real estate splits. You can also flip it around to find how much you need to sell to hit your income target.
Sales commission calculator
Formulas
How to Calculate Commission
Every commission plan is built from a few simple formulas. Here is how each one works, with a worked example.
Graduated tiered commission
Sum of (sales in each tier × tier rate)With 5% up to $10,000, 7.5% up to $25,000 and 10% above, $30,000 in sales earns $500 + $1,125 + $500 = $2,125.
Retroactive tiered commission
All sales × rate of the tier reachedOn the same plan, a retroactive structure pays the 10% top rate on every dollar once you pass $25,000, so $30,000 earns $3,000.
Sales needed for a target
Sales = (Target pay − Base) ÷ RateTo earn $6,000 with a $2,000 base and a 5% rate, you need ($6,000 − $2,000) ÷ 0.05 = $80,000 in sales.
Commission on profit? Some plans, like car sales, pay a percentage of gross profit instead of the sale price. Enter the profit as the sales amount, and work out margins with the profit margin calculator.
Real estate
How Real Estate Commission Is Split
A real estate commission passes through several hands before it reaches the agent. On a $400,000 sale with a 5% total commission and a 70/30 broker split, it breaks down like this.
| Step | Share | Amount |
|---|---|---|
| Total commission | 5% of $400,000 | $20,000 |
| Buyer agent’s brokerage | 50% of total | $10,000 |
| Listing agent’s brokerage | 50% of total | $10,000 |
| Listing broker keeps | 30% of the listing side | $3,000 |
| Listing agent gross | 70% of the listing side | $7,000 |
| Seller net proceeds | Sale price minus total commission | $380,000 |
Benchmarks
Typical Commission Rates by Industry
Commission rates vary widely by company, product and experience. These ranges are common starting points, not guarantees.
| Industry | Typical commission | Paid on |
|---|---|---|
| Real estate (US) | 5% to 6% in total, split between agents | Sale price |
| Car sales | 20% to 30% | Dealer gross profit per vehicle |
| Recruiting and staffing | 15% to 25% | Candidate first-year salary |
| B2B and SaaS sales | About 8% to 12% | Annual contract value |
| Property and casualty insurance | About 10% to 15% new, less on renewals | Premium |
| Travel agents | Around 10% to 15% | Booking value |
| Retail sales | 1% to 10% | Sales amount |
Why ours
Why This Commission Calculator Is Better
Most commission calculators only multiply sales by a rate. Real pay plans are rarely that simple.
Four calculators in one
Flat rate with base pay, tiered plans, real estate splits and a sales target finder, all in a single tool.
Graduated or retroactive tiers
Add up to 6 tiers and switch between the two ways companies pay them. Your current tier lights up as you type.
Real estate take-home
Go from sale price to agent net in one step, including the other agent’s side, your broker split and any fees.
Visual pay breakdown
A live donut chart shows where every dollar goes, from base salary versus commission to broker and fee shares.
Shows the working
Every result shows the formula with your numbers, so you can check a payslip or explain a plan to your team.
Private and shareable
Nothing leaves your browser. Share a link that reopens your exact plan, tiers included, in six currencies.
Guide
How to Use the Commission Calculator
Pick the plan that matches yours. Results update as you type.
- Choose the commission type
Flat rate for a single percentage, Tiered for rates that rise with sales, Real estate for property deals, or Sales target to plan ahead.
- Enter your sales and rate
Type your sales for the period and your commission percentage. Add a base salary if you have one.
- Set up tiers or splits
For tiered plans, enter each limit and rate and pick graduated or retroactive. For real estate, add your side and broker split.
- Read the breakdown
See your commission, total pay and the donut chart showing where the money goes.
- Plan your next month
Switch to Sales target to see how much you need to sell to reach your income goal, then share or copy the result.
Benefits
Who Uses a Commission Calculator
Knowing exactly how commission works helps everyone on both sides of a pay plan.
Salespeople
Check every payslip, compare job offers by on-target earnings and see how close you are to the next tier.
Real estate agents
Know your real take-home before you list, and explain costs clearly to sellers who want to compare offers.
Sales managers and founders
Design fair tiered plans, test what they cost at different sales levels and keep commission in line with your margins.
Freelancers and affiliates
Compare commission-based work with hourly pay using the freelance hourly rate calculator and salary to hourly calculator.
FAQ
Commission Calculator FAQ
How do you calculate commission?
Multiply the sales amount by the commission rate as a decimal. For example, $25,000 in sales at a 6% commission rate earns $25,000 × 0.06 = $1,500. If you also have a base salary, add it to get your total pay.
What is tiered commission?
Tiered commission pays higher rates as sales rise past set levels. In a graduated plan each slice of sales earns its own rate, so $30,000 at 5% up to $10,000, 7.5% up to $25,000 and 10% above earns $2,125. In a retroactive plan all sales earn the top rate reached, which would be $3,000.
How is real estate commission calculated?
Multiply the sale price by the total commission rate, then split it between the buyer and listing brokerages and again between each agent and their broker. A $400,000 sale at 5% gives $20,000, or $10,000 per side, and an agent on a 70/30 split keeps $7,000 before fees and taxes. Since August 2024 in the US, buyer agent pay is agreed separately with the buyer.
What is a good commission rate?
It depends on the industry. Real estate commissions in the US usually total 5% to 6%, recruiters often earn 15% to 25% of a first-year salary, and B2B software sales commonly pay about 8% to 12% of contract value. Compare offers using total expected pay, not the rate alone.
What does base plus commission mean?
Base plus commission is a pay plan with a guaranteed salary and a variable commission on top. Your total pay for a period equals your base salary plus your sales multiplied by your commission rate.
What is OTE in sales?
OTE, or on-target earnings, is the total pay you can expect if you hit 100% of your sales quota. It equals base salary plus target commission. Many sales roles use base to variable splits between 50/50 and 70/30.
How do I calculate my commission percentage?
Divide the commission you earned by the sales amount and multiply by 100. For example, a $1,200 commission on $30,000 of sales is a 4% commission rate.
How much do I need to sell to reach my income target?
Subtract your base salary from your target pay, then divide by your commission rate. To earn $6,000 with a $2,000 base at 5%, you need ($6,000 − $2,000) ÷ 0.05 = $80,000 in sales.
Is commission taxed differently from salary?
Commission is taxed as ordinary income, just like salary. In the US, employers may withhold federal tax on commission paid separately at a flat 22% supplemental rate, which can differ from your actual tax rate. Any difference is settled when you file your return.
Know What Every Sale Is Worth
Use the commission calculator before every big deal and at every pay period, then plan your wider finances with our salary and tax tools.
Calculate my commissionResults are estimates before tax. Your employment contract or brokerage agreement decides how commission is actually paid.