Commission Calculator
- Updated
- Formula shown
- Free, no sign-up
Results
5% commission on $50,000.00 is $2,500.00.
How to use the commission calculator
- Pick what you want: commission at one rate, commission on tiers, the rate from a sale and its commission, or the sales needed for a target.
- Enter the sales and the rate. Add base pay to see total earnings for the period.
- For tiers, enter each rate and the sales level where it stops. Leave a tier's upper limit blank to make it the top tier.
- Choose how the tiers apply: each rate on its own slice of sales, or the rate of the tier you reach on all sales.
Commission formulas
Rate = commission ÷ sales × 100
Sales needed = target commission ÷ (rate ÷ 100)
Tiered (slices) = Σ (sales inside each tier × that tier's rate)
Tiered (whole amount) = all sales × rate of the tier reached
Plans differ in how tiers work. In the slice method, like tax brackets, a higher rate applies only to sales above its threshold. In the whole-amount (retroactive) method, crossing a threshold lifts the rate on every sale in the period, which creates a jump in pay at each threshold. Your compensation plan says which one applies.
Worked examples
At a flat 5%, $50,000 of sales earns $2,500, and earning $3,000 takes $60,000 of sales.
On a plan paying 5% up to $10,000, 7% from $10,000 to $25,000 and 10% above, $30,000 of sales earns:
- Tier 1: $10,000 × 5% = $500.00
- Tier 2: $15,000 × 7% = $1,050.00
- Tier 3: $5,000 × 10% = $500.00
That is $2,050.00, an average of 6.83%. If the plan applied the top rate reached to all sales, the same month would pay $3,000.00. Under the slice method, a $3,000 target needs $39,500.00 of sales.
Commission table
Flat-rate commission on common sales amounts.
| Sales | 2% | 3% | 5% | 6% | 8% | 10% | 15% | 20% |
|---|---|---|---|---|---|---|---|---|
| $1,000 | $20.00 | $30.00 | $50.00 | $60.00 | $80.00 | $100 | $150 | $200 |
| $10,000 | $200 | $300 | $500 | $600 | $800 | $1,000 | $1,500 | $2,000 |
| $50,000 | $1,000 | $1,500 | $2,500 | $3,000 | $4,000 | $5,000 | $7,500 | $10,000 |
| $100,000 | $2,000 | $3,000 | $5,000 | $6,000 | $8,000 | $10,000 | $15,000 | $20,000 |
| $250,000 | $5,000 | $7,500 | $12,500 | $15,000 | $20,000 | $25,000 | $37,500 | $50,000 |
| $500,000 | $10,000 | $15,000 | $25,000 | $30,000 | $40,000 | $50,000 | $75,000 | $100,000 |
Tips for checking a commission plan
- Know the base. Commission may be paid on gross sales, on collected revenue, or on gross profit. A 20% commission on profit can pay less than 5% on sales.
- Draws are advances. A recoverable draw is subtracted from later commission; a non-recoverable draw is a guaranteed minimum.
- Watch the period. Tiers that reset monthly are harder to reach than tiers based on quarterly or yearly sales.
- Returns and chargebacks. Many plans claw back commission when a customer cancels or returns an item.
- Commission is taxable wages. It is usually treated as supplemental pay for withholding; see the take-home paycheck calculator for net pay.
Setting prices or checking profit on a deal? The margin calculator converts between margin and markup, and the salary calculator turns total pay into hourly, monthly or yearly figures.
Frequently asked questions
How do I calculate commission?
Multiply the sales by the commission rate as a decimal. At 5%, $50,000 of sales earns $50,000 × 0.05 = $2,500.
How does tiered commission work?
Different rates apply to different levels of sales. With 5% up to $10,000, 7% to $25,000 and 10% above, $30,000 of sales earns $500 + $1,050 + $500 = $2,050 when each rate applies to its own slice, or $3,000 if the top rate reached applies to all sales.
How do I work out my commission rate?
Divide the commission by the sales and multiply by 100. A $2,500 commission on $50,000 of sales is a 5% rate.
How much do I need to sell to earn a target commission?
Divide the target by the rate as a decimal. To earn $3,000 at 5%, you need $3,000 ÷ 0.05 = $60,000 of sales. On the 5%, 7% and 10% tiers above, you need $39,500.
Is commission paid on sales or on profit?
It depends on the plan. Many retail and real estate plans pay on the sale price, while many B2B plans pay on gross profit or collected revenue. Check your compensation plan, because the base changes what a rate is worth.