Commission Calculator

Commission-
Total pay (base + commission)-
Sales needed for target-

How it works

Commission = sales × commission rate ÷ 100. Total pay adds any base salary for the same period. To find the sales needed for a goal, divide the target commission by the rate: sales needed = target ÷ (rate ÷ 100).

Example: $50,000 in sales at 5% earns $2,500 commission. Add $2,000 base pay for $4,500 total. To earn $4,000 in commission at 5% you need $80,000 in sales.

FAQ

Is commission calculated before or after tax?

Commission is normally quoted as a percentage of sales, and taxes are taken from your pay afterward. Supplemental income can be withheld at a different rate than regular pay, so your take-home amount may differ.

What about tiered rates?

This tool uses one flat rate. For tiers, calculate each slab separately (for example 3% on the first $20,000 and 5% above) and add the results.

What is a typical commission rate?

It varies enormously by industry, from 1 to 3% in some retail and real estate splits to 20% or more in some software and direct sales roles. Check your own plan.

See also: percentage calculator · hourly to salary calculator · margin calculator