Commission Calculator

Calculate the commission on a sale, add it to a base salary for total pay, or work backwards to find the commission rate.

Commission formula

Commission = sale amount × commission rate Commission rate = commission ÷ sale amount × 100

A $250,000 sale at a 3% rate earns 250,000 × 0.03 = $7,500. If you split that 50/50 with a broker, your share is $3,750.

Structure	How it works
Straight commission	Pay is only a percentage of sales.
Base plus commission	A fixed salary plus a percentage of sales.
Tiered commission	The rate rises once sales pass set targets.
Split commission	Commission is shared between agents or with a broker.

For tiered plans, calculate each tier separately and add them together.

How do I calculate a 5% commission?

Multiply the sale by 0.05. On $40,000, 5% commission is $2,000.

Is commission calculated before or after tax?

Commission is usually calculated on the sale price before sales tax and is taxed as income when paid.

How do I find my commission rate?

Divide the commission you received by the sale amount and multiply by 100.

Is commission based on revenue or profit?

It depends on your plan. Some pay on revenue, others on gross profit. Check your compensation agreement.