Commission Calculator: Figure Out Your Sales Earnings
Many sales, real estate, and retail jobs pay a base salary plus commission. The commission is typically a percentage of the sales you close. This calculator estimates your total commission and total earnings based on your sales volume and commission rate.
How Commission Is Calculated
The basic commission formula is simple:
Some plans use a tiered structure where higher sales volumes earn higher rates, and many include a base salary on top of the commission earnings.
Example Calculation
$25,000 in monthly sales at a 10% commission rate with a $3,000 base:
- Commission: $25,000 x 10% = $2,500
- Base salary: $3,000
- Total earnings: $5,500
FAQ
What is a good commission rate?
It varies by industry. Retail often pays 1% to 5%, while B2B sales, real estate, and software can pay 10% to 50% or more.
Is commission taxed?
Yes, commission is considered ordinary income and is subject to the same taxes as wages.
What is a draw vs. straight commission?
A "draw" is an advance against future commissions that must be repaid, while straight commission has no base guarantee.
Disclaimer: This calculator provides estimates based on your inputs. Your actual commission plan may differ.