Sales Commission Calculator
Figure out what you'll earn on your next sale. Enter your sales numbers and commission rates. Get your breakdown in seconds. Works with flat rates, tiered structures, and base plus commission.
Commission Structure Types
Three ways commission works:
Flat Rate
Same percentage on every sale. Sell $100,000 at 5%? That's $5,000. Sell $200,000? That's $10,000. The rate never changes.
Tiered Commission
Your rate goes up as you sell more. Maybe 5% on your first $50,000, then 7% above that. The more you sell, the higher your rate climbs.
Base Salary + Commission
Guaranteed salary plus commission. Base of $50,000 + $20,000 in commission = $70,000 total. You get paid even in slow months, but you still have upside when you sell.
How to Use This Calculator
Pick your structure from the dropdown. Enter your sales number. Add your commission rate. Hit calculate.
For tiered commissions, you'll enter three tiers. Each tier has a sales threshold and a rate. The calculator breaks down what you earn in each tier.
Choose your time period (month, quarter, or year). For monthly and quarterly, you'll see an annual projection. The take-home estimate subtracts 25% for taxes. Your actual take-home depends on your tax bracket and withholdings—this is just a rough estimate.
Commission Examples
Flat Rate with Base Salary
Structure: $40,000 annual base + 5% commission
Monthly sales: $50,000
Calculation:
- Base salary (monthly): $40,000 ÷ 12 = $3,333.33
- Commission: $50,000 × 5% = $2,500
- Total monthly earnings: $3,333.33 + $2,500 = $5,833.33
- Annual projection: $5,833.33 × 12 = $70,000
Three-Tier Structure
Structure: Tiered commission only
- First $100K: 8%
- $100K - $250K: 10%
- Above $250K: 12%
Quarterly sales: $400,000
Calculation:
- Tier 1: $100,000 × 8% = $8,000
- Tier 2: $150,000 × 10% = $15,000
- Tier 3: $150,000 × 12% = $18,000
- Total quarterly commission: $41,000
- Annual projection: $41,000 × 4 = $164,000
Flat Rate Example
Structure: 3% flat commission
Sale amount: $500,000
Calculation:
- Commission: $500,000 × 3% = $15,000
- Monthly (1 sale): $15,000/month
- Annual (12 sales): $15,000 × 12 = $180,000/year
How Commission Works
What Is Commission?
Commission is pay based on what you sell. Sell $100,000 at 10% commission? You earn $10,000. More sales = more money. The upside: higher earning potential. The downside: income varies month to month.
Flat Rate Commission
Earn the same percentage on every sale. Agent makes 3% on a $300,000 house? That's $9,000. Sell a $500,000 house? That's $15,000 at the same 3% rate. Easy math. The rate doesn't change no matter how much you sell.
Tiered Commission
Your rate goes up when you hit certain numbers. Say you earn 5% on your first $10,000, then 7% on $10,000-$25,000, then 10% above $25,000. Sell $30,000 total? You'd earn: ($10,000 × 5%) + ($15,000 × 7%) + ($5,000 × 10%) = $500 + $1,050 + $500 = $2,050. That's 6.8% overall, but you earned the higher rates on that last $20,000.
Base Salary + Commission
You get a guaranteed salary plus commission on top. Say your base is $3,000/month and you earn 10% commission. Even if you sell nothing, you still get $3,000. Sell $10,000? You get $3,000 + $1,000 = $4,000. Sell $50,000? You get $3,000 + $5,000 = $8,000. The base protects you during slow months.
Gross vs Net Commission
Gross commission = percentage of the sale price. Net commission = percentage of the profit only. Big difference. Sell a $30,000 car that cost the dealer $25,000. At 20% gross commission, you'd earn $6,000. At 20% net commission, you'd earn $1,000 (20% of the $5,000 profit). Always ask which type you're getting.
Commission Clawbacks
Some companies take back commission if the customer refunds. You sell a $50,000 deal, earn $5,000 commission, then the customer cancels? You might owe that $5,000 back. This is called a clawback. Some companies avoid this by only paying commission after the customer's payment clears or after a trial period ends.
Before You Calculate
- Check your offer letter for your commission rate and structure
- Know your tier breakpoints if tiered. First $X at Y%, next at Z%
- Figure out payment timing. Some companies pay at sale, others when customer pays, some wait 30-60 days. This affects your cash flow planning
- Ask about clawbacks
- Check for caps on maximum earnings
- Save 25-30% for taxes
- Track sales yourself. Don't rely only on company records
Commission Calculator Questions
How do I calculate flat rate commission?
Multiply your sales by your commission rate. If you sold $10,000 and earn 5% commission: $10,000 × 0.05 = $500.
How do tiered commissions work?
Different rates kick in at different sales levels. Earn 5% on your first $50,000, then 7% above that. Sell $80,000? ($50,000 × 5%) + ($30,000 × 7%) = $2,500 + $2,100 = $4,600.
What's the difference between gross commission and take-home pay?
Gross is your total before anything comes out. Take-home is what hits your bank account after taxes, insurance, and other withholdings. This calculator estimates take-home at 75% (assumes 25% deductions). Your actual take-home varies based on your tax bracket, state taxes, health insurance, 401k contributions, and other deductions. Some people take home 80%, others just 65%.
Can I calculate commission with a base salary?
Yes. Pick "Base Salary + Commission" from the dropdown, enter your numbers, and calculate.
What if my commission structure has more than three tiers?
Three tiers max. Got more? Calculate extras separately and add them.
Why does the calculator show an annual projection?
For monthly calculations, it multiplies by 12. For quarterly, it multiplies by 4. Shows what you'd make over a full year at your current pace.