How to use the commission calculator
- Type your sales for the period and your commission rate.
- Tiered plan? Tick the box and type the threshold and the higher rate paid on sales above it.
- Add base pay for the same period to see your total, and a goal to see the sales you'd need.
How it's calculated
Flat rate commission = sales × rate
Tiered commission = (sales up to the threshold × rate 1) + (sales above it × rate 2)
Total pay base pay + commission
Sales needed goal ÷ rate (tiered: the threshold, plus what's left of the goal ÷ rate 2)
In a tiered plan like this, the higher rate applies only to the part of sales above the threshold, not to all of it. Some plans work differently ("retroactive" tiers pay the higher rate on everything once you pass the threshold), so check yours.
Worked examples
$50,000 of sales at 5% = $2,500 commission
with $2,000 base pay = $4,500 total pay
Tiered: 5% up to $40,000, 8% above, on $60,000
$40,000 × 5% = $2,000 + $20,000 × 8% = $1,600 = $3,600 (6% of sales)
Goal of $3,000 at 5% = $60,000 in sales needed
Goal of $3,000, tiered as above = $40,000 + $1,000 ÷ 8% = $52,500
Frequently asked questions
Is commission taxed?
Yes: employees' commission is pay and is taxed like salary, and freelancers' commission is business income. This calculator shows amounts before tax. For take-home pay, see our US and UK take-home pay calculators.
Is commission worked out on sales or on profit?
Either, depending on the plan. If yours pays on gross profit, type the profit as "Sales".