Commission Calculator

Multiply the sales amount by the commission rate. For $50,000 in sales at 5%, commission = 50,000 × 0.05 = $2,500. Add any base salary to get total pay.

In a graduated plan, each rate applies only to the sales inside its band. With 3% on the first $10,000, 5% on $10,000–$25,000, 7% on $25,000–$50,000 and 10% above that, $60,000 in sales earns $300 + $750 + $1,750 + $1,000 = $3,800.

Graduated tiers pay each rate only on its slice, like tax brackets. Whole-amount (sometimes called retroactive) tiers pay the rate of the highest tier you reach on all of your sales, so crossing a threshold raises the commission on every dollar.

It is total commission divided by total sales. It is useful for comparing tiered plans with flat ones: the example above earns $3,800 on $60,000, an effective rate of about 6.33%.

The total commission is the sale price times the agreed rate, and it is often split between the buyer's and seller's agents and then with each agent's brokerage. Enter the sale price and the share of the rate that you receive.

In the US, commission is treated as supplemental wages for withholding, which can mean a flat federal withholding rate when paid separately, but it is taxed as ordinary income when you file. This calculator shows gross pay before any taxes.