Commission Calculator
Your commission on a sale, your total pay, and the sales you need to hit a target.
Good to know. A 3% commission on a house sounds small until you remember it’s usually split four ways.
How it works
In plain words
Multiply the sales by the commission rate. Add the base pay for your total. To reach a target, take the base pay off the target and divide by the rate.
The formula
commission = sales × rate ÷ 100 total pay = base + commission sales needed = (target − base) ÷ rate × 100
Worked example
5% of 50,000 in sales is a commission of 2,500.00. With a base of 2,000, total pay is 4,500. To earn 6,000, you need (6,000 − 2,000) ÷ 5% = 80,000 in sales.
Sources
No outside data or rates: this is plain arithmetic.
4 automated tests check its answers on every change.
About the commission calculator
Commission is pay based on what you sell: a percentage of each sale, on top of or instead of a salary. It is common in sales, real estate, car dealerships, recruitment and financial advice.
Enter the sales for a period, the rate, and your base pay for the same period, if you have one. The calculator shows your commission, your total pay and how much of it depends on sales. Add a target and it works backwards to the sales you need to reach it.
Some plans are tiered: for example 5% up to a quota and 8% above it. Work these out one tier at a time and add them up. Others pay on profit or margin rather than the sale price, so check which amount your rate applies to. A draw against commission is an advance that later commission pays back, not extra pay.
In US real estate, the listing commission, often 5 to 6% of the sale price, is usually split between the buyer’s and seller’s brokerages, and each agent then shares theirs with their broker. So 3% of a $400,000 sale for one side is $12,000, but the agent may keep half of it or less.
Questions people ask
How do I calculate commission?
Multiply the sale amount by the commission rate. 5% of 50,000 is 50,000 × 0.05 = 2,500.
How much do I need to sell to earn a target?
Take your base pay off the target, then divide by the rate. For 6,000 with a 2,000 base at 5%: 4,000 ÷ 0.05 = 80,000.
Is commission taxed differently?
Commission is taxed as ordinary income, like salary. It is often withheld at a flat supplemental rate, and any difference is settled on your tax return.