Commission Calculator

Calculate sales commission from a sale amount and commission rate, add an optional base salary, and see total earnings and your effective rate. Free, instant, fully validated.

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Commission Calculator

Commission = Sale × Rate

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Commission Earned
Total Earnings
Effective Rate on Sale
Base vs Commission

How Sales Commission Is Calculated

The core commission formula is simple: Commission = Sale Amount × Commission Rate. A $50,000 sale at a 5% commission rate earns $2,500. Many sales roles combine a fixed base salary with commission, so total earnings = base + commission. This calculator lets you add an optional base and shows both your commission and your effective payout rate on the sale.

Commission structures vary widely: straight commission (no base, higher rate), base-plus-commission (lower rate, steady income), and tiered plans where the rate rises after you hit a quota. Whatever the structure, the per-sale math always starts here — multiply the sale value by the applicable rate. Use this tool to check a paycheck, compare job offers, or estimate earnings before closing a deal.

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Straight Commission

No base salary — you earn only on sales, usually at a higher rate (often 7–20%). Higher risk, higher ceiling.

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Base + Commission

A guaranteed salary plus a smaller commission rate (often 2–5%). Steadier income with upside on performance.

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Tiered Plans

The rate increases once you pass a quota — e.g., 4% up to $100k, 6% above. Run each tier separately and add the results.

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Effective Rate

Total earnings ÷ sale amount shows what you actually keep per dollar sold — useful when comparing base-plus plans against straight commission.

Commission Calculator FAQ

Multiply the sale amount by the commission rate (as a decimal). A $20,000 sale at 6% = 20,000 × 0.06 = $1,200. If you also receive a base salary, add it to the commission for total earnings. This calculator does both and shows your effective rate on the sale.
It varies by industry: retail 2–5%, real estate 5–6% (often split between agents), SaaS/tech sales 8–15% of deal value, and insurance 5–15% or more. Straight-commission roles pay higher rates than base-plus-commission roles. Enter your specific rate to see exact earnings.
Tiered plans pay a higher rate once you exceed a threshold. For example, 4% on the first $100,000 and 6% on sales above it. To calculate, run each tier separately in this tool (e.g., $100,000 × 4% then the excess × 6%) and add the commissions together.
Commission is taxable income. Employers often withhold it at a flat supplemental rate (22% federal for amounts up to $1 million), but your actual tax depends on your total annual income and bracket. This calculator shows gross commission before taxes — use the Income Tax or Take-Home Paycheck calculator to estimate the after-tax amount.

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✔ Reviewed by the True Value Calc editorial team🗓 Last updated June 2026📚 Sources: Peer-reviewed formulas & official U.S. government data