Commission Calculator
Calculate sales commission from a flat percentage, tiered rate structure or split rate. Useful for sales roles, real estate agents and freelance pricing.
How to use the Commission Calculator
- Enter your inputs into the Commission Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The commission formulas
Flat: Commission = Sales × rate · · · Tiered: Commission = Σ (slice × tier rate) · · · Split: Commission = Total × your %
Flat rate is the simplest. Tiered structures pay higher rates above thresholds. Split rates divide commission between agent and broker, or between team members.
Worked example
$80,000 in monthly sales at a tiered 5% on the first $50,000 and 7% above: commission = 50,000 × 0.05 + 30,000 × 0.07 = $2,500 + $2,100 = $4,600. A 60/40 split with a broker leaves the agent with $2,760.
Frequently asked questions
How do tiered commissions work?
Sales below a threshold earn the base rate; sales above earn the higher rate on the excess only. Designed to motivate exceeding quota without overpaying for low performance.
What is a draw against commission?
An advance against future commissions paid as a base salary. Provides income stability; if commissions don't cover the draw, the rep typically owes back the difference.
How are commissions taxed?
As ordinary income, with mandatory federal withholding at 22% supplemental rate for the first $1M annually (37% above that). Plus state tax and FICA.