Commission Calculator
Calculate sales commission from a sale amount and rate, after any split or fees, and see the sales you need to reach an earnings goal. Example: a $400,000 sale at 5% earns $20,000, or $10,000 after a 50% split.
Show steps
How to use the Commission Calculator
- Enter the sale amount and the commission rate.
- Enter your share if the commission is split, and any fixed fee.
- Add an earnings goal to see how many sales you need.
- Press Calculate.
Formula and method
Commission = sale amount x commission rate. Your commission = commission x your share – fixed fees. Sales needed for a goal = goal / (rate x share).
Worked example: $400,000 sale at 5%
| Step | Result |
|---|---|
| Total commission (400,000 x 5%) | $20,000.00 |
| Your 50% share | $10,000.00 |
| Sales needed for $100,000 | $4,000,000.00 |
| Number of $400,000 sales | 10 |
Commission by sale price and rate
| Sale | 3% | 5% | 6% |
|---|---|---|---|
| $100,000 | $3,000 | $5,000 | $6,000 |
| $250,000 | $7,500 | $12,500 | $15,000 |
| $400,000 | $12,000 | $20,000 | $24,000 |
| $600,000 | $18,000 | $30,000 | $36,000 |
| $1,000,000 | $30,000 | $50,000 | $60,000 |
Common commission structures
Straight commission pays a flat percentage. Tiered or graduated plans pay higher rates above a quota. Real estate and brokerage plans often split the commission between agent and firm. Salary plus commission adds a base pay.
Frequently asked questions
How do I calculate commission?
Multiply the sale amount by the commission rate.
What is a commission split?
The share of the commission you keep after your employer or broker takes theirs.
How much commission is typical?
It varies: real estate often totals 5% to 6% before splits, and many sales jobs pay 1% to 10%.
How do I find sales needed for a goal?
Divide your goal by the rate and your share.
Is commission taxed?
Yes, as ordinary income, often with higher supplemental withholding.
What is a tiered commission?
A plan where the rate rises after you pass sales thresholds.
Sources
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