Commission Calculator
Calculate sales commission with flat rates, tiered structures, or splits. See your earnings breakdown for any sale amount.
Commission Summary
Your Commission
$6,000
6.00% effective rate
Sale Amount
Commission Structure
Commission Breakdown
| Tier/Component | Amount | Rate | Commission |
|---|---|---|---|
| Flat Rate | $100,000 | 6% | $6,000 |
| Total | $100,000 | 6.00% | $6,000 |
Quick Reference
| Sale Amount | 5% | 6% | 7% | 10% |
|---|---|---|---|---|
| $25,000 | $1,250 | $1,500 | $1,750 | $2,500 |
| $50,000 | $2,500 | $3,000 | $3,500 | $5,000 |
| $100,000 | $5,000 | $6,000 | $7,000 | $10,000 |
| $250,000 | $12,500 | $15,000 | $17,500 | $25,000 |
| $500,000 | $25,000 | $30,000 | $35,000 | $50,000 |
Commission Summary
Your Commission
$6,000
6.00% effective rate
Quick Answer
To calculate commission, multiply sales amount by commission rate. For tiered commissions, apply each rate to the corresponding sales bracket. Our free calculator at practicalwebtools.com handles flat, tiered, and bonus commission structures.
Key Facts
- Flat commission: simple percentage of all sales
- Tiered commission: rates increase at sales thresholds
- Draw vs commission: draw is advance against future commissions
- Base + commission: guaranteed salary plus variable earnings
- Gross margin commission: based on profit, not revenue
- Residual commission: ongoing payments for recurring revenue
Frequently Asked Questions
Basic commission: Sale Amount × Commission Rate. For $50,000 sale at 6% = $3,000 commission. Tiered structures pay different rates for different sale amounts. Split commissions divide between multiple parties (agent/broker, team members).
Varies by industry: Real estate 5-6%, car sales 25% of profit or $100-500 flat, retail 1-10%, software sales 5-10%, financial services 1-3%. Enterprise sales often 5-15% on first-year contract value.
Tiered (or graduated) commission pays different rates at different sales levels. Example: 5% on first $10k, 7% on $10k-50k, 10% on $50k+. Incentivizes higher sales. Calculate each tier separately and sum totals.
Commission split divides total commission among multiple parties. Real estate: 6% total → 3% each to buyer's and seller's agent, then further split with brokerages (often 70/30 or 80/20). New agents typically get smaller splits.
Commissions are taxed as ordinary income. Employees have taxes withheld (often at higher supplemental rate of 22%). Independent contractors (1099) pay self-employment tax (15.3%) plus income tax. Quarterly estimated payments may be required.
Commission Summary
Your Commission
$6,000
6.00% effective rate