Commission Calculator
Calculate sales commission earnings, total payout, and take-home pay from a commission-based or mixed salary structure.
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How to use this calculator
Multiply total sales by the commission rate percentage, then add any base salary for total earnings.
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Enter your total sales for the period.
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Enter the commission rate your employer or contract specifies.
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Enter your base salary (enter 0 if commission-only).
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Enter any deductions or business expenses if applicable.
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See your commission earned and total pay.
Frequently asked questions
What is a typical sales commission rate?
Commission rates vary widely: real estate agents earn 2–3% per side; SaaS salespeople typically earn 8–12% of ARR; car salespeople ~2–5% of sale price; insurance agents 5–15% of premium. Internal B2B sales roles average 3–8% of deal value.
What is a tiered commission structure?
Tiered commission pays higher rates as you hit higher sales targets. Example: 3% on the first $30,000, 5% on $30,001–$60,000, 8% above $60,000. This incentivises exceeding targets and is common in SaaS and retail.
How are commissions taxed?
In most countries, commission is regular earned income and taxed at your marginal rate. In the US, employers may withhold 22% flat on supplemental pay (including commissions) or use the aggregate method. Either way, you reconcile at tax time.
What is a draw against commission?
A draw is an advance on future commissions — the company pays you a minimum monthly amount, and you repay it from earned commissions. A recoverable draw must be paid back if you don't earn enough; a non-recoverable draw is a guaranteed minimum.
Commission-based pay structures explained
How to use the commission
Use this commission to les commission earnings, total payout, and take-home pay from a commission-based or mixed salary structure. Enter your values above and get your result in seconds. The tool is free, works on all devices, and keeps your data private — nothing is stored or shared.
How the commission works
The commission calculator uses standard formulas used in financial planning, budgeting, and investment decisions. Enter your inputs, and the tool calculates the result instantly in your browser. No server-side processing means your data stays on your device. Results update in real time as you change inputs.
Types of commission structures
Straight commission: 100% of pay is from sales (high risk, high reward). Base plus commission: a fixed salary plus variable commission (most common in B2B sales). Revenue share: a percentage of recurring revenue, common in SaaS. Residual commission: ongoing payments as long as a client remains (insurance, financial services).
On-target earnings (OTE) explained
OTE is the total compensation a salesperson earns if they hit 100% of quota. It includes base salary plus expected commission. A $120,000 OTE with 50/50 split means $60,000 base + $60,000 if quota is met. Always ask what percentage of reps historically hit OTE before accepting a commission-based offer.
Tracking commissions accurately
Commission disputes are common when tracking is manual. Use a CRM or commission tracking software to log every deal, rate, and payment. Keep copies of your commission agreement and monthly statements. Errors in commission calculations are surprisingly frequent — audit your own pay.
Commission: how it works
This free tool helps you plan and compare financial scenarios in seconds. Enter your figures, adjust the assumptions, and instantly see how different inputs affect the outcome — ideal for budgeting, benchmarking, and data-driven decision-making.
Who uses this tool?
Financial planners, accountants, students, and individuals use it to model scenarios before committing to major financial decisions. It is equally useful for quick sanity checks and detailed what-if analyses.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →