Commission Calculator
Work out what a sale or a period of sales pays. Enter the sales amount and a flat commission rate, or set up to four tiers and choose how they apply: each portion of sales at its own rate, or all sales at the rate of the tier reached. Add base pay to see total earnings.
- Runs in your browser
- No sign-up
- Free to use
| Sales up to | Rate % |
|---|---|
Leave “Sales up to” empty in the last tier for “and above”.
How to use Commission Calculator
- Enter the sales amount.
- Choose a flat rate or tiers, and enter the rates.
- For tiers, choose how they are applied.
- Add base pay if there is one, and read the commission and total.
Commission Calculator features
Flat or tiered
A single rate or up to four tiers.
Two tier methods
Marginal (each portion at its rate) or whole (all sales at the tier reached).
Breakdown
Commission earned in each tier.
Effective rate
Commission as a share of sales.
Base plus commission
Adds base pay for total earnings.
Any currency
Amounts in your currency.
When to use Commission Calculator
- Checking a sales commission statement.
- Comparing job offers with different pay plans.
- Designing a commission scheme for a team.
- Calculating an agent’s or broker’s commission.
Commission Calculator FAQ
How is commission calculated?
At a flat rate, commission = sales × rate. A 5% commission on 48,000 of sales is 2,400.
What is tiered commission?
A scheme where the rate changes with sales volume, rewarding higher performance. Tiers are defined by sales thresholds.
What is the difference between the two tier methods?
With the marginal method, each portion of sales earns its own tier’s rate, like tax bands. With the whole method, reaching a higher tier raises the rate on all sales, which creates jumps at each threshold.
Is commission paid on revenue or profit?
Either, depending on the agreement. Enter whichever amount your plan uses as the sales amount.
Does the result include tax?
No. Commission is usually taxable income; the result is a gross amount.
Can I model a cap?
Set the last tier’s rate to 0 above the cap amount.
How commission plans shape behaviour
Commission links pay to results, which is why it is common in sales, real estate, recruitment and brokerage. The structure of a commission plan matters as much as its headline rate, because people respond to the incentives it creates.
A flat rate is simple and transparent: every sale is worth the same percentage. Tiered plans reward volume by paying more beyond certain thresholds. They come in two forms. The marginal form pays each slice of sales at its own rate, so earnings rise smoothly. The whole-amount form raises the rate on all sales once a threshold is crossed, which creates strong incentives just below each threshold and sudden jumps in pay.
Base pay plus commission balances security and motivation. A higher base suits long sales cycles and team selling; a higher commission share suits transactional sales. Caps, minimums and clawbacks add further rules that should be modelled before a plan is agreed.
Whatever the plan, write it down precisely: what counts as a sale, when commission is earned and paid, on revenue or margin, and what happens with returns. Then test it with realistic numbers, as this calculator does, to see what people will actually earn.