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Sales Commission Calculator

📅Last updated: October 24, 2025
✓Reviewed by: LumoCalculator Team

Calculate sales commissions instantly with our professional calculator. Perfect for sales professionals, managers, and business owners to compute earnings, total payouts, and net revenue.

Calculate Commission

Sales Amount
$
Commission Type
Commission Rate (%)
%
Base Salary (Optional)
$

Results

Total Sales
$50,000.00
Commission Earned
$2,500.00
Total Payout
$2,500.00
Salary + Commission
Net Revenue
$47,500.00
After Commission
Commission Rate: 5.00% of sales

Related Calculators

Types of Sales Commission Structures

💰 Percentage Commission

Most common structure - earn a fixed percentage of each sale

Example: 5% commission on $50,000 = $2,500
Best for: Consistent pricing, predictable margins

💵 Flat Rate

Fixed amount per sale regardless of value

Example: $500 per sale
Best for: Standard products, volume-based sales

📊 Tiered Commission

Increasing rates as you hit higher sales thresholds

Example: 3% (0-10k), 5% (10k-25k), 7% (25k+)
Best for: Motivating quota achievement

💼 Base + Commission

Fixed salary plus commission on sales

Example: $3,000/month + 3% of sales
Best for: Income stability, long sales cycles

How to Calculate Commission

Commission Formulas

Percentage: Commission = Sales Amount × Rate%
Total Payout: Base Salary + Commission
Net Revenue: Sales - Commission
Rate %: (Commission ÷ Sales) × 100
1
Determine sales amount
Total value of goods or services sold
2
Apply commission rate
Multiply by percentage or add flat amount
3
Add base salary (if applicable)
Include fixed salary component

Average Commission Rates by Industry

IndustryTypical RateStructure
Real Estate5-6%Split between agents
SaaS/Software10-15%Base + commission
Insurance10-20%First year premium
Retail1-3%Hourly + commission
Manufacturing B2B7-15%Base + tiered

Example Calculations

Case 1: Percentage Commission

Sales: $50,000
Rate: 5%
Base Salary: $0
Commission: $2,500
Total Payout: $2,500
Net Revenue: $47,500

Case 2: Base + Commission

Sales: $100,000
Rate: 8%
Base Salary: $40,000
Commission: $8,000
Total Payout: $48,000
Net Revenue: $92,000

Commission Best Practices

✓ Clear Structure

Define rates, tiers, and payment terms in writing

📊 Track Everything

Document all sales, commissions, and calculations

⏰ Payment Schedule

Establish consistent commission payment dates

🎯 Align Incentives

Match commission structure to business goals

Frequently Asked Questions

How is sales commission calculated?
Sales commission is typically calculated as a percentage of total sales. For example, a 5% commission on $50,000 in sales equals $2,500. Some structures use flat rates per sale, tiered rates based on sales volume, or a combination of base salary plus commission.
What is a good commission rate for sales?
Average commission rates vary by industry: 5-15% for real estate, 5-10% for B2B software, 1-3% for retail, and 10-20% for insurance. Higher-ticket items typically have lower percentages, while lower-priced products may offer higher rates to incentivize volume.
What is the difference between gross and net commission?
Gross commission is the total commission earned before any deductions. Net commission is what you actually receive after taxes, fees, chargebacks, or other deductions. Always clarify with your employer which type is referenced in your compensation plan.
How do tiered commission structures work?
Tiered commissions increase rates as you hit higher sales thresholds. For example: 3% on $0-$10k, 5% on $10k-$25k, 7% on $25k-$50k, and 10% above $50k. This motivates salespeople to exceed quotas and rewards top performers with accelerated earnings.
Should I choose base salary plus commission or commission only?
Base salary plus commission provides income stability and is better for new salespeople or industries with long sales cycles. Commission-only offers unlimited earning potential but comes with financial risk. Consider your experience, savings, and risk tolerance when choosing.
When are sales commissions typically paid?
Payment timing varies: some companies pay commissions with regular paychecks, others monthly or quarterly. Payment may occur at contract signing, upon customer payment, or after a clawback period. Always clarify commission payment terms and any conditions that could delay or forfeit payment.