Commission Calculator — earnings from sales and rate

How it works

The core is one multiplication: commission = sales × rate. Many roles add a base salary, so total pay is base + commission, and the effective rate (total pay ÷ sales) shows what fraction of sales the whole package costs — high when sales are low and the base dominates, converging on the commission rate as sales grow. The sales-level sweep makes the scaling concrete: on pure commission, earnings are linear in sales; with a base, they start higher but rise more slowly in percentage terms. It is the clearest way to compare a high-base/low-rate offer against a low-base/high-rate one.

Worked example

The anchor is LibreTexts' published example: Helene, a realtor, receives 3% commission on a $260,000 house — $260,000 × 0.03 = $7,800. On the preset with a base — 5% on $200,000 plus a $40,000 salary — the commission is $10,000 and total pay $50,000, an effective 25% of sales because the base is spread over fewer dollars sold: this calculator's own arithmetic on the published formula.

Frequently asked questions

How is commission calculated?

Sales times the commission rate: a 3% rate on $260,000 of sales is $7,800. If commission is tiered (a higher rate above a threshold), compute each tier separately and add them; this page prices a single flat rate, which covers the most common structure.

What is the effective rate on sales?

Total pay divided by sales — the blended rate the whole compensation represents. With no base it equals the commission rate; a base salary lifts it, especially at low sales, since the fixed base is a larger share of a smaller number. It's the honest way to compare pay packages.

Is commission paid before or after a base salary?

They're separate and added together: the base is guaranteed pay, the commission is earned on sales. Total pay is base + commission, which this page reports. Whether commission is paid on gross sales, net sales, or profit depends on the plan — enter the figure your plan actually pays on.

How do base salary and commission rate trade off?

A higher base with a lower rate pays more when sales are modest; a lower base with a higher rate pays more when sales are strong. The sweep shows the crossover for your numbers — run each offer's base and rate and compare total pay at the sales you realistically expect.

Does this handle draws or caps?

No — some plans advance a "draw" against future commission or cap total payout. Those adjust the timing or ceiling of pay, not the base arithmetic here. Confirm your plan's draw, cap, and payout basis (gross vs net) with the actual comp document.

Is commission taxed differently?

Commission is ordinary income, but employers often withhold it at a supplemental flat rate, which can differ from your regular paycheck withholding — a withholding difference, not a final-tax difference. The take-home-pay calculator handles the withholding side.

How accurate is this, and what does it exclude?

The arithmetic is exact for the sales, rate, and base entered. It excludes tiered and accelerator rates, draws and caps, the sales basis (gross vs net vs profit), and all taxes and withholding. Treat it as gross commission pay; net take-home needs the payroll calculators.