Commission Calculator
Calculate sales commission earnings. Enter your sales amount and commission rate to find your commission, total earnings with base salary, and effective rate. Free and private.
How Sales Commission Is Calculated
Sales commission is a performance-based payment calculated as a percentage of revenue generated. The basic formula multiplies the sales amount by the commission rate. Most compensation plans combine a base salary with commission, balancing income stability with performance incentives. The total compensation and the split between base and variable pay depend on industry, role seniority, and sales cycle length.
Commission Formula
Commission = Sales Amount × (Commission Rate / 100)
Total Earnings = Base Salary + Commission
Effective Rate = (Commission / Sales) × 100
Common Commission Structures
Flat-rate commission pays the same percentage on every sale. Tiered commission increases the rate as you hit higher sales thresholds, rewarding top performers. Draw against commission provides a guaranteed minimum that is later deducted from earned commission. Revenue-based plans pay on the sale price, while profit-based plans pay on the margin. SaaS companies often use accelerators that boost rates above quota.
Typical Commission Rates by Industry
Commission rates vary widely across sectors. Real estate agents typically earn 5-6% of the sale price. Insurance agents receive 5-15% depending on the product. SaaS and technology sales roles pay 5-15% with on-target earnings often doubling the base salary. Retail commissions range from 1-10%. Higher-value, longer sales cycles tend to carry higher commission rates because fewer deals close per period.