Business Tools
Commission Calculator
Calculate sales commission, earnings, and take-home pay. Professional commission calculator with tiered rates and monthly projections.
Use Commission Calculator to get instant results without uploads or sign-ups. Everything runs securely in your browser for fast, reliable output.
Your results will appear here.
About this tool
Calculate sales commission and total earnings with our professional commission calculator. Features tiered commission tracking, base salary integration, and monthly projections.
Used by sales professionals, freelancers, and real estate agents for accurate commission calculations.
Usage examples
Simple Commission
$10,000 sale at 5% = $500 commission
Sale: $10,000, Rate: 5%
Real Estate
$400,000 home at 3% = $12,000 commission
Sale: $400,000, Rate: 3%
With Base Salary
$5,000 sales + $3,000 base = $3,500 total
Sales: $5,000, Rate: 10%, Base: $3,000
How to use
- Enter sale amount
- Enter commission rate (%)
- Optionally add base salary
- View commission breakdown, earnings, and monthly projections
Benefits
- Accurate commission calculations
- Base salary support
- Monthly projections
- Tiered commission tracking
- Take-home pay estimates
- Free to use
FAQs
How is commission calculated?
Commission = Sale Amount × (Commission Rate ÷ 100). For example, a $1,000 sale at 10% commission equals $100. Multiply your total sales by the commission percentage (as a decimal). $50,000 in sales × 0.08 (8%) = $4,000 commission. Some companies pay on gross sales, others on net (after returns/discounts). Always clarify the base amount for commission calculations with your employer.
What is a typical commission rate?
Commission rates vary by industry: Real estate (2.5-3%), Insurance (5-10%), Software sales (10-20%), Retail (1-5%). Our calculator works with any rate. B2B tech sales often see 10-15% on first-year contracts. Car sales typically earn 20-25% of dealer profit (not vehicle price). Financial advisors: 1-3% of assets managed. Higher rates compensate for longer sales cycles or lower volume.
Can I include my base salary?
Yes! Enter your base salary to see total earnings (commission + base salary) and get accurate take-home projections. Many sales roles offer "base + commission" structure. Base provides income stability while commission rewards performance. Typical splits: SDR/BDR: 60/40 (base/commission), Account Executive: 50/50, Inside Sales: 70/30. Pure commission roles (100% commission, no base) are common in real estate and insurance.
How do tiered commissions work?
Tiered commissions increase at higher sales volumes. For example: 5% for first $10k, 7% for $10k-$50k, 10% above $50k. Our calculator shows your current tier. Tiers incentivize exceeding quotas. If you sell $75k in tiered structure: ($10k × 5%) + ($40k × 7%) + ($25k × 10%) = $500 + $2,800 + $2,500 = $5,800 total commission. Each tier is cumulative, not replacing previous rates.
What is commission clawback and how does it work?
Commission clawback means recovering paid commission if a customer cancels, refunds, or doesn't pay. Common in industries with returns (retail) or long payment terms (SaaS). Example: You earn $1,000 commission on a sale, customer cancels after 2 months, company deducts $1,000 from future commissions. Protect yourself: understand clawback terms in your contract, focus on quality leads that stick, ask about "earned" vs "paid" commission timing.
Should I negotiate my commission rate?
Yes! Commission rates are negotiable, especially with proven track record. Research: industry standards, company's typical rates, your experience level, quota difficulty. Negotiate higher percentage, lower quota, better tier thresholds, or accelerators (bonuses for exceeding goals). Example: "Industry standard is 12%, I have 5 years experience, can we start at 13%?" Best time: job offer, annual review, after exceptional performance. Higher rates = more motivation = better for both parties.
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