Commission calculator

Commission from a rate, or the rate from a commission.

Formula Finance

Commission

Total pay: US$2,400.00

How it works

A flat commission is the sale amount times the rate. Add any base pay for the period to see total earnings.

To find the rate, divide the commission by the sale amount. Tiered schemes, where the rate rises above a threshold, apply each rate only to the part of sales in its band; calculate each band separately and add them.

Formula

Commission = sales × rate ÷ 100
Rate = commission ÷ sales × 100
Total pay = base + commission

Worked example

Sales of 48,000 at a 5% commission earn 2,400. With a base pay of 2,000 the total is 4,400. A commission of 2,400 on 48,000 is a rate of 5%.

Questions people ask

Is commission calculated on profit or on sales?

Either, depending on the contract. Enter the amount your commission is based on as the sale amount.

What is a typical commission rate?

It varies widely by industry and country, from under 1% to over 20%. Your contract sets the rate.