Commission Calculator
Calculate sales commission with flat or tiered rates, plus optional base salary.
How to Use
- Enter the total sale amount in dollars that the commission will be calculated on.
- Optionally enter a base salary to include in the total earnings calculation.
- Choose "Flat Rate" for a single commission percentage, or "Tiered Rates" to define multiple commission brackets (e.g., 5% on the first $10,000, 8% on the next $20,000, etc.).
- Click "Calculate Commission" to see the commission earned, base salary, total earnings, and effective commission rate.
Frequently Asked Questions
What is tiered commission?
Tiered commission applies different rates to different portions of a sale amount. For example, a salesperson might earn 5% on the first $10,000 in sales and 8% on everything above that. This rewards higher sales volumes with progressively better rates, similar to how tax brackets work.
How is the effective commission rate calculated?
The effective rate is the total commission earned divided by the total sale amount, expressed as a percentage. With tiered rates, this blended rate will fall between your lowest and highest tier rates. It gives you a single number to understand your overall commission performance.
Can I use this for real estate or insurance commissions?
Yes. This calculator works for any commission-based compensation including real estate, insurance, retail sales, affiliate marketing, and financial services. Simply enter the sale price and your commission rate.
What if my last tier has no upper limit?
Leave the "Up To" field empty for the last tier. The calculator will apply that tier's rate to all remaining sale amounts above the previous tier's limit. This is the standard way to handle open-ended commission structures.