Commission Calculator
Calculate your commission earnings, total income with base salary, and effective commission rate.
Commission Earned
—
Total Earnings
—
Effective Rate
—
What is Commission Calculator?
A commission calculator quickly determines how much you earn based on your total sales, commission rate, and optional base salary. It also shows your effective commission rate — the commission earned as a percentage of total sales — which is useful when comparing compensation structures across jobs.
How to use
- 1 Enter your total sales amount for the period.
- 2 Enter your commission rate as a percentage.
- 3 Optionally enter a base salary to see total compensation.
- 4 Commission earned, total earnings, and effective rate are calculated instantly.
- 5 Use this to project earnings, compare offers, or verify your paycheck.
Formula
Example calculation
Sales of $85,000 at 8% commission = $6,800. With a $45,000 base salary, total earnings = $51,800. Effective commission rate = 8%.
Frequently asked questions
What is a typical commission rate?
It varies widely by industry. Real estate: 2.5–3% of sale price per agent. SaaS sales: 8–12% of ARR. Car sales: $200–$500 flat per car. Retail: 3–5%. Financial advisors: 0.5–1% AUM. Always clarify whether the rate is on revenue or gross profit.
What is a draw against commission?
A draw is an advance on future commissions. If you earn $3,000 in commission but your draw was $4,000, you owe $1,000 back (recoverable draw) or the employer absorbs it (non-recoverable draw).
How do tiered commissions work?
Tiered structures pay higher rates as you hit sales thresholds. For example: 5% on the first $10K, 8% on $10K–$50K, 10% above $50K. Each tier applies only to the portion of sales within that bracket.
Is commission income taxed differently?
Commission is ordinary income and taxed the same as salary. However, employers sometimes withhold at a flat 22% supplemental rate rather than your regular rate. You'll true it up when you file your tax return.
How do I calculate commission on gross profit vs revenue?
On revenue: commission = sales × rate. On gross profit: first subtract COGS (cost of goods sold) from sales, then apply the rate to the margin. Gross-profit-based plans reward selling higher-margin products.