How to use the Commission Calculator
- Enter the sale amount.
- Enter the commission rate.
- For tiered plans, set the threshold and the higher rate.
- Optionally add your base salary for the period.
What does this tool do?
Sales, real estate and recruitment roles often pay commission as a percentage of the sale. Tiered plans pay a higher rate on the portion above a threshold — only that portion, not the whole sale.
Why use it?
- Check your commission statement.
- Compare job offers with different plans.
- See your effective commission rate.
Example: tiered commission
Sales of $25,000 with 5% up to $20,000 and 8% above it: 5% of $20,000 is $1,000 and 8% of the remaining $5,000 is $400, so the commission is $1,400 — an effective rate of 5.6%.
The formula
Privacy
The calculation happens instantly in your browser. The numbers you enter are not sent to our servers or saved. There's no account to create and nothing to install.
Frequently asked questions
How does tiered commission work?
Each rate applies only to the part of the sale in its tier. With 5% up to $10,000 and 8% above, a $15,000 sale earns 5% of $10,000 ($500) plus 8% of $5,000 ($400), so $900 in total.
Is commission paid on the sale price or on profit?
It depends on the plan. Many pay on revenue, while others pay on gross profit so salespeople don't give away too much discount. Check your contract for the exact basis.
Last reviewed by the M2Toolkit team.