Commission Calculator
Calculate commission on any sale, or find the commission rate from what was paid.
- Amount after commission
- $11,100.00
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How to use the commission calculator
- Choose "Find commission" if you know the rate, or "Find rate" if you know the amount paid.
- Enter the sale amount, and the rate or the commission.
- Read the commission and the amount left after it is paid.
Commission formulas
Tiered plans pay different rates on different bands of sales. Calculate each band separately and add them up.
Example
A sales agent closes a 12,000 order at a 7.5% commission rate. The commission is 900, leaving 11,100. If another deal of 8,000 paid 480 in commission, its rate was 6%.
Where commission is used
Sales staff and agents earn commission on deals, affiliates earn it on referred sales, and marketplaces and agencies take it from each sale. The math is the same; what changes is who pays whom.
Setting a fair commission rate
Start from your margin. The commission must leave enough profit after product and operating costs. Many businesses pay a higher rate on high-margin products and new customers, and less on repeat or discounted sales.
Frequently asked questions
How do I calculate commission?
Multiply the sale amount by the commission rate as a decimal.
How do I work out a commission rate?
Divide the commission by the sale amount and multiply by 100.
Is commission calculated on revenue or profit?
Either, depending on the agreement. This calculator uses the amount you enter, so use profit if the plan pays on profit.
What is a typical sales commission rate?
It varies widely by industry, from a few percent on large deals to 20% or more in some sales roles.
Is commission taxed?
Usually yes, as income for the person who earns it. Check local tax rules.
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