🤝 Commission Calculator
Calculate the commission on a sale and your total pay including any base salary.
Quick answer: Commission = sale amount × commission rate ÷ 100. For example, 5% commission on $25,000 of sales is $1,250.00; with a $2,000 base salary, total earnings are $3,250.00.
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Commission Calculator inputs
Result
Total earnings
$3,250.00
$1,250.00 commission + $2,000.00 base
| Base salary | $2,000.00 |
| Commission (5% of $25,000.00) | $1,250.00 |
| Total earnings | $3,250.00 |
Commission on $25,000.00 at other rates
| Rate | Commission | Total with base |
|---|---|---|
| 1% | $250.00 | $2,250.00 |
| 2% | $500.00 | $2,500.00 |
| 3% | $750.00 | $2,750.00 |
| 5% | $1,250.00 | $3,250.00 |
| 7.5% | $1,875.00 | $3,875.00 |
| 10% | $2,500.00 | $4,500.00 |
| 15% | $3,750.00 | $5,750.00 |
| 20% | $5,000.00 | $7,000.00 |
| 25% | $6,250.00 | $8,250.00 |
How commission is calculated
Commission is pay tied to results: a percentage of the value of the sales a person makes. It is common for sales staff, estate agents, recruiters and brokers, either on its own or on top of a base salary.
Commission = Sale amount × Rate ÷ 100 · Total earnings = Base salary + Commission
Example: a sales rep on a $2,000 monthly base sells $25,000 of products at a 5% rate → commission $1,250.00, total earnings $3,250.00 for the month.
Common commission structures
- Straight commission: pay is only a percentage of sales.
- Base plus commission: a fixed salary plus a (usually lower) commission rate.
- Tiered commission: the rate rises once sales pass set thresholds – for example 4% up to $50,000 and 6% above it. Work out each tier separately and add them up.
- Draw against commission: an advance paid each period and later deducted from commission earned.
- Gross-margin commission: the rate applies to profit rather than revenue, which discourages heavy discounting.
Typical rates by field
| Field | Typical rate |
|---|---|
| Retail | 1–5% |
| Car sales | 20–30% of the gross profit |
| Software / SaaS | 5–15% of contract value |
| Recruitment | 15–25% of first-year salary (agency fee) |
Tips
- Check whether commission is paid on invoiced sales or only once the customer pays.
- Ask how refunds, cancellations and discounts affect commission already earned.
- Compare offers on expected total pay, not the headline rate.
- Get the plan in writing, including quotas, caps and when commission is considered earned.
For a tiered plan, run the calculator once per tier using the sales that fall into that band, then add the results together.
Estimates for educational purposes, not financial or tax advice.
Frequently asked questions
How do I calculate commission percentage?
Divide the commission received by the sale amount and multiply by 100. A $900 commission on an $18,000 sale is a 5% rate.
What is a typical sales commission rate?
It varies by industry: retail and car sales often pay 1–5% of the sale, software and B2B sales 5–15% of contract value, and US real estate commissions have historically been 5–6% split between agents.
What is the difference between straight and base-plus commission?
Straight commission pays only a share of sales, so income depends entirely on results. Base-plus commission adds a fixed salary, trading a lower rate for steadier income.
Is commission taxed differently from salary?
Commission is ordinary earned income. In the US it is often treated as a supplemental wage for withholding purposes, so more may be withheld up front, but the final tax owed is the same.