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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

  1. Enter your inputs into the Commission Calculator above.
  2. Results update instantly as you type — no submit button needed.
  3. 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.

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