Enter a sale amount and a rate to see your commission and total pay with base salary. Switch to tiered rates, or work backwards to find the rate or the sales you need to hit a target.
Runs in your browser. Shows gross pay before tax; your pay plan or contract sets the real terms.
This commission calculator is for salespeople, real estate agents, recruiters and managers who set pay plans. It works out a flat commission, a tiered commission where higher bands pay higher rates, and your total pay with a base salary. It can also solve backwards for the rate you were paid or the sales needed to earn a set amount.
How Do You Calculate Commission?
Multiply the sale amount by the commission rate written as a decimal. A 6% commission on $25,000 of sales is 25,000 × 0.06 = $1,500. Add any base salary to get total pay, so a $2,000 base plus $1,500 commission gives $3,500 of gross pay for the period, before tax.
What Is the Commission Formula?
The commission formula is commission = sale amount × commission rate ÷ 100, and you can rearrange it to find the rate or the sales needed.
rate = commission ÷ sales × 100
sales needed = commission ÷ (rate ÷ 100)
total pay = base pay + commission
The commission rate is the percentage of each sale you keep. The base salary is fixed pay you get whatever you sell, and base plus commission is your gross pay, the amount before tax and other deductions. Some plans also pay a draw, an advance on future commission that is later subtracted from what you earn. If you know the rate as a fraction of the price, the percentage calculator converts it for you.
How Does Tiered Commission Work?
In a tiered commission plan, each band of sales is paid at its own rate, so only the sales above a threshold earn the higher rate. With 5% up to $10,000, 7% from $10,000 to $50,000 and 10% above $50,000, sales of $60,000 earn $500 + $2,800 + $1,000 = $4,300. That is an effective commission rate of 7.17%, the total commission divided by total sales.
| Sales | Tiered commission | Effective rate | Flat 6% for comparison |
|---|---|---|---|
| $8,000 | $400 | 5% | $480 |
| $30,000 | $1,900 | 6.33% | $1,800 |
| $50,000 | $3,300 | 6.6% | $3,000 |
| $60,000 | $4,300 | 7.17% | $3,600 |
| $100,000 | $8,300 | 8.3% | $6,000 |
Some employers use a retroactive plan instead, where reaching a tier pays the higher rate on all sales. This tool uses the banded method, which is the more common reading, so check your own plan.
How Is Commission Taxed?
In the US, the IRS treats commissions as supplemental wages, and employers may withhold federal income tax on them at a flat 22% when they are paid separately from regular wages, as explained in IRS Publication 15. That is only withholding; your actual tax depends on your full year’s income. Other countries tax commission as normal earnings. To see what a pay rate is worth per hour, the salary to hourly calculator can help, and commission tied to overtime hours may also need the overtime calculator. This tool shows gross figures only and is not tax advice.
Worked Example
Sam sells $25,000 of software in a month at a 6% commission rate with a $2,000 monthly base. With Commission selected, the tool shows $1,500.00 in commission and $3,500.00 total pay. Switching to Tiered with 5% up to $10,000, 7% up to $50,000 and 10% above, a $60,000 month earns $4,300.00, an effective 7.17%. To earn $1,500 at 6%, Find sales shows Sam needs $25,000.00 in sales.
How Do You Use the Commission Calculator?
Choose what to calculate
Pick Commission, Tiered, Find rate or Find sales at the top.
Enter sales and rate
Type the sale amount, the rate or the commission earned, plus any base pay.
Read the result
The big number is the commission, the rate or the sales needed, with the sum shown below.
Check total pay
The boxes show commission, base plus commission, the effective rate and the sales.
Frequently Asked Questions
What is a typical sales commission rate?
Rates vary widely by industry. Many retail and wholesale jobs pay a few percent of sales, while some software and recruitment roles pay 10% or more. Real estate commissions are negotiable. Always check the rate written in your own pay plan.
How do I work out my commission rate?
Divide the commission by the sales and multiply by 100. If you earned $1,250 on $50,000 of sales, your rate is 1,250 ÷ 50,000 × 100 = 2.5%. Use the Find rate mode to do this in one step.
How much do I need to sell to earn a set commission?
Divide the commission you want by the rate as a decimal. To earn $3,000 at a 4% rate you need 3,000 ÷ 0.04 = $75,000 in sales. The Find sales mode works this out and adds your base pay.
What is a real estate agent's commission on a $400,000 home?
At a 3% rate, the commission is 400,000 × 0.03 = $12,000. That amount is often split between the buyer's and seller's brokers and then between each agent and their brokerage, so one agent usually takes home less.
Is commission included in gross pay?
Yes. Gross pay is base salary plus commission and any bonuses, before tax and deductions. A $2,000 base with $1,500 commission is $3,500 gross. Your take-home pay will be lower after income tax and other withholding.
What is a draw against commission?
A draw is an advance paid to a salesperson that is later taken back out of commission earned. If you get a $2,000 draw and earn $3,500 in commission, you receive the extra $1,500. Rules for unearned draws depend on your contract.
Sources and Further Reading
- IRS Publication 15 (Circular E), Employer's Tax Guide: supplemental wages
- US Bureau of Labor Statistics: Wholesale and Manufacturing Sales Representatives, pay
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Last reviewed: October 2026