Commission Calculator: Flat, Tiered & Base Pay Rates

Commission is the pay you earn as a share of the sales you make. To find it, multiply your total sales by your commission rate, then divide by 100. On $10,000 in sales at a 5% rate, that is $500. The calculator above handles flat rates, base pay plus commission, and tiered rates that rise as sales grow.

How do you calculate commission?

Multiply your total sales by your commission rate, then divide by 100. That gives your commission. The formula is: commission = sales × rate ÷ 100.

Example: you sell $10,000 worth of goods at a 5% commission rate. Multiply $10,000 by 5, which is $50,000, then divide by 100. Your commission is $500. The math is the same whether you sell products, services, or property.

What is the commission formula?

The core formula is commission = sales × rate ÷ 100. If you know your commission and sales but want the rate, flip it around: rate = commission ÷ sales × 100. And if you know the rate and the commission but want the sales figure, use sales = commission ÷ rate × 100. All three are the same equation rearranged.

Commission rate chart

This chart shows commission earned at common rates across different sales totals. Find your sales figure across the top and your rate down the side.

How does base salary plus commission work?

Many sales roles pay a fixed base plus commission on top. Your total earnings are the base pay added to your commission. If your base is $2,000 for the period and you earn $500 in commission, your total is $2,500.

The base gives you steady income even in a slow period, while the commission rewards strong sales. Switch the calculator to the base plus commission mode to add your fixed pay to the commission figure.

What is tiered commission?

Tiered commission pays a higher rate as your sales climb through set bands. Each rate applies only to the sales inside its band, not to your whole total. This is also called graduated commission.

Example: the first $5,000 pays 3%, the next $5,000 pays 5%, and everything above $10,000 pays 8%. On $12,000 in sales, you earn 3% on the first $5,000 ($150), 5% on the next $5,000 ($250), and 8% on the last $2,000 ($160). Your total commission is $560, and your effective rate across all sales is 4.67%.

What is an effective commission rate?

Your effective rate is your total commission divided by your total sales, times 100. With tiered structures, it sits somewhere between your lowest and highest band rate. In the example above, $560 in commission on $12,000 in sales is an effective rate of 4.67%, even though the top band was 8%. The effective rate is a quick way to see what you really earned as a single percentage.

How to work out your commission rate from your pay

If you know your commission and your sales but not your rate, divide the commission by the sales, then multiply by 100. Earning $750 on $15,000 in sales is a 5% rate. This is useful for checking that your pay matches your agreement, or for comparing one commission deal against another.

What is a draw against commission?

A draw is an advance on future commission. Your employer pays you a set amount upfront, then subtracts it from the commission you earn later. If you take a $1,000 draw and earn $1,500 in commission, you keep the $500 difference. A draw helps smooth out income in commission-only roles, but you have to earn enough to cover it.

Commission in real estate and sales

Commission rates vary a lot by industry. Real estate agents often work on a percentage of the sale price, split between the buyer's and seller's agents, and then again with their brokerage. Retail and B2B sales roles use rates that depend on margin and deal size. Always check your own agreement, because the structure, splits, and rates differ from one employer to the next.

Is commission taxed differently?

Commission is taxable income like your regular pay. It can be withheld at a higher rate in the period you receive it, especially if it is paid as a lump sum, but over the year it is taxed based on your total income. The higher withholding on a big commission check often evens out when you file.

How does commission fit into total earnings?

Commission is one part of your pay. To see your full picture, add it to any base salary or hourly wage you earn. If your income mixes a salary with commission, run your base through the annual income calculator to turn it into a yearly figure, then add your expected commission on top.

Frequently asked questions

How do I find commission on $10,000 in sales?

Multiply $10,000 by your rate and divide by 100. At 5% that is $500. At 10% it is $1,000.

What is a good commission rate?

It depends on the industry and whether you also get a base. Rates often run from 1% to 10% on top of a base salary, and higher for commission-only roles. Compare any offer against the norm for your field.

How is commission different from a bonus?

Commission is tied directly to your sales as a percentage. A bonus is usually a fixed reward for hitting a target or for overall performance. You can earn both in the same role.

Can commission be more than my base pay?

Yes. In many sales roles, strong performers earn more from commission than from their base. In commission-only jobs, it is your entire income.

How do I calculate split commission?

Work out the full commission first, then apply the split percentage. If a $6,000 commission is split 50/50, each side gets $3,000. Real estate deals often run through several splits before the agent's share is set.

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