Commission Calculator
Calculate sales commission, earnings, and percentage rates. Compute tiered commissions, referral fees, and affiliate payouts for sales professionals and businesses.
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Sales Information
$
Total sales value for the period
%
Percentage commission on sales
$
Fixed salary if applicable
$
Sales target to unlock bonus
%
Additional bonus rate above threshold
Common commission rates:
Earnings Summary
Total Earnings
$8,000.00
Base salary + commission
Commission Earned
$5,000.00
Base Salary
$3,000.00
Income Breakdown
Base Salary:$3,000.00
Commission (10% of $50,000.00):+$5,000.00
Total Earnings:$8,000.00
Commission as % of total:62.5%
Tax Note: Commission income is taxable. With $8,000.00 in total earnings, estimate ~$2,000.00 in taxes (25% bracket). Consult a tax professional for accurate withholding.
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How to Use the Commission Calculator
Enter your total sales amount, commission rate, and base salary (if applicable). The calculator shows your commission earnings and total compensation.
Commission Formula
Commission = Sales Amount × (Commission Rate ÷ 100)
Total Earnings = Base Salary + Commission
Example: $50,000 sales at 10% + $3,000 base
Commission = $50,000 × 0.10 = $5,000
Total = $3,000 + $5,000 = $8,000
Commission Rates by Industry
| Industry | Typical Rate | Structure |
|---|---|---|
| Real Estate | 5-6% | Split between agents |
| Car Sales | 20-25% | Of gross profit |
| B2B Tech/SaaS | 8-12% | Often tiered |
| Insurance | 5-10% | Plus renewals |
| Retail | 2-5% | Low margin industry |
| Financial Services | 3-6% | Varies by product |
| Pharmaceutical | 8-15% | Plus bonuses |
Common Compensation Structures
- Base + Commission: Fixed salary + % of sales (most common, provides stability)
- Commission Only: 100% commission (highest earning potential, highest risk)
- Draw Against Commission: Advance on future commissions (must be repaid)
- Tiered Commission: Rate increases as you hit targets
- Revenue Commission: % of total sale value
- Gross Profit Commission: % of profit (sale price - cost)
Maximizing Commission Earnings
- Focus on high-value clients and products
- Build strong customer relationships for repeat business
- Understand your product thoroughly to close more deals
- Negotiate better commission rates as you prove performance
- Track your metrics: conversion rate, average deal size, sales cycle
- Upsell and cross-sell to increase average order value
- Time sales strategically to hit quota bonuses
Commission Income Planning
- Budget on base salary: Use commission for savings/extras
- Save for taxes: Set aside 25-30% for income tax
- Track seasonal patterns: Sales often vary by month/quarter
- Build emergency fund: 6+ months expenses (income varies)
- Understand payment terms: When is commission paid? (monthly, quarterly)
Pro Tip: Document all sales and commission agreements in writing. Know when commissions are earned (at sale, delivery, or payment) and any clawback policies if customers cancel.
Frequently Asked Questions
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