Business
Calculate commission earned from sales and a commission rate.
Enter your numbers to see the answer.
Commission calculator guide
Commission is a share of a sale paid to the person or agency that made it, so the calculation itself is a straightforward percentage of sales. This calculator multiplies the sales figure by the commission rate and shows the amount earned, alongside the sales and rate it used, so both a salesperson checking a payslip and a manager budgeting a quarter can see the same number. It suits flat-rate plans: a fixed percentage on every dollar sold. Tiered plans, where the rate steps up after a quota, and plans that pay a percentage of gross profit rather than revenue need each tier or the margin worked out separately, then added. The result is a gross commission before income tax, social contributions, and any clawback for refunded or cancelled orders, and it does not include base salary, bonuses, or draw recoveries, so compare it with the commission line of a pay statement rather than the take-home total.
Commission ($) = sales ($) × commission rate (%) ÷ 100.
Worked example with the default inputs: sales of $12,000 at a commission rate of 7%. Commission = $12,000 × 7 ÷ 100 = $12,000 × 0.07 = $840.00. The calculator lists the sales figure and the 7% rate underneath so the multiplication can be checked. If the same rep’s rate stepped up to 10% on sales above $10,000, the plan would pay $10,000 × 0.07 + $2,000 × 0.10 = $700 + $200 = $900 instead, which is why a tiered plan needs each band entered separately.
Sales is a currency amount for the period being paid; the calculator does not convert currencies. Enter the commission rate as a percentage, so 7 for 7%, not 0.07. If a plan quotes commission in basis points, divide by 100 first: 250 basis points is 2.5%. Sales tax or VAT collected on an invoice is usually excluded from commissionable sales; check the plan document.
The result is a planning figure that depends entirely on the assumptions you entered. Fees, taxes, payment timing, and rate changes are not captured unless you built them into the inputs, and small errors in a rate compound quickly over time. Verify the rates and terms against your own agreements or your accountant before making a commitment. On this page the figure rests entirely on sales and commission rate, so start there if the commission calculator returns something you did not expect.
Good to know: entering a decimal rate where a percentage is expected is the usual slip; 0.07 in the rate field would return 84 cents rather than $840. Confirm whether the plan pays on booked sales, invoiced sales, or cash received, because those totals differ in any month with unpaid invoices. Returns and cancellations often trigger a clawback in a later period, so a month’s figure here can be reduced after the fact.
Use the result for planning, then confirm taxes, fees, contract terms, and other business-specific assumptions. This is not accounting, tax, or investment advice.
How it works
Calculate commission earned from sales and a commission rate. This tool explains the calculation so you can adjust the assumptions to match your situation.
Worked example
With Sales = 12000 $ · Commission rate = 7 % → $840.00 (commission earned). Change an input above and this example updates with your numbers.
Common questions
Multiply the sales amount by the commission rate expressed as a decimal. For a 7% rate, multiply by 0.07. On $12,000 of sales that is $840. For a tiered plan, apply each tier’s rate only to the sales that fall inside that band and add the pieces.
$12,000 × 0.07 = $840. At 5% the same sales pay $600, and at 10% they pay $1,200. Each extra percentage point of rate is worth $120 on $12,000 of sales.
It depends on the plan. Many plans use net sales after discounts, returns, and sales tax. Others pay on gross profit so that heavy discounting reduces commission. Read the plan wording and enter the figure it defines as commissionable.
The figure here is gross commission. Employers withhold income tax and social contributions from it, and self-employed agents owe tax on it later. Net commission will be lower than the calculated amount.
A tiered plan pays a low rate up to a threshold and a higher rate above it. Split the sales at each threshold, multiply each slice by its own rate, and add the results. Some plans are retroactive, meaning the higher rate applies to all sales once a tier is reached; that pays more, so check which type you have.