Commission Calculator
Work out your sales commission and total pay from your sales amount, commission rate and any base salary or draw.
How the commission calculator works
Commission is a percentage of the sales you make. Enter your sales for the period, your rate and any base pay, and the calculator shows what you earned and what you need to sell to hit a target.
The formulas
Example: Sales of $50,000 at a 5% rate earn $2,500.00. To earn $1,000 in commission at this rate you need $20,000.00 in sales.
Plans with tiers, caps or bonuses work differently. For tiered plans, calculate each tier on its own and add the results. The figures are before tax.
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Frequently asked questions
How do you calculate commission?
Multiply the sales amount by the commission rate. A 5 percent rate on $50,000 of sales is $2,500.
What is a typical commission rate?
It varies by industry. Real estate and insurance often pay several percent, while some retail and software roles pay around 1 to 10 percent.
Is commission taxed?
Yes, commission is income and is taxed like wages.
What is a draw against commission?
A draw is an advance paid before commission is earned and is later subtracted from commission.
How do I work out sales needed for a goal?
Divide your target commission by the rate. A $2,000 goal at 4 percent needs $50,000 in sales.
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