Commission Calculator
Calculate your sales commission. Enter your total sales, commission rate, and optional base salary to see your earnings.
How to Use
1
Enter your total sales amount.
2
Enter your commission rate percentage.
3
Optionally add base salary.
4
Click Calculate.
Formula
Commission
Sales Amount x Commission Rate %
Total
Base Salary + Commission
Example
A real estate agent sells a $500,000 home at 3% commission = $15,000. With a $2,000 base salary, total earnings = $17,000.
Why It Matters
Understanding your commission structure helps you set sales goals. If you need $6,000/month and earn 5% commission, you need to sell $120,000/month (or $30,000/week).
Who Uses This Calculator?
- • People comparing loan, mortgage, salary, savings, tax, or investment scenarios before making a money decision.
- • Homeowners, borrowers, employees, freelancers, and small business owners who need fast estimates without a spreadsheet.
- • Anyone who wants to understand the inputs, formula, and tradeoffs behind a financial result.
Frequently Asked Questions
What is a typical commission rate?
Real estate: 5-6%. Car sales: 20-30% of gross profit. Insurance: 10-15% first year. Retail sales: 5-15%. SaaS sales: 5-15%.
Is commission taxed differently?
Commission is taxed as regular income. However, it may be withheld at a higher supplemental rate (22% federal in the US). You get the difference back at tax time.
What is a draw against commission?
A draw is an advance on future commissions. If you earn $3,000 draw and $2,500 commission, you keep the $3,000 and owe $500 from future earnings.
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This calculator provides estimates for informational purposes only and is not financial, tax, or legal advice. Consult a qualified professional before making financial decisions.