NoInstallTools

Commission Calculator

Calculate commission amounts, required sales targets, or implied rates — for single sales or entire books of business.

Sale Details

Results update instantly as you type.

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How Commission Works

A commission is a percentage of a sale price paid to the person who facilitated the sale — an agent, salesperson, broker, or advertiser. The fundamental formula is:

Commission = Sale Price × Commission Rate

For multiple sales: Commission = Total Sales × Rate. Commission can also be fixed (a flat fee regardless of sale price), but percentage-based structures dominate because they scale incentives with value.

Common commission structures

  • Straight commission — 100% of earnings come from commission. High risk, high reward.
  • Base + commission — a guaranteed salary plus a commission on top. Most common in B2B sales.
  • Tiered commission — the rate increases as sales volume grows. Rewards top performers disproportionately.
  • Draw against commission — an advance on future commissions, repaid out of earned commission.
  • Residual commission — ongoing payments for recurring contracts (common in insurance and SaaS).

Typical commission rates by industry

Real Estate (agent)2.5 – 3% per side
SaaS / Software Sales8 – 12% of ARR
Insurance (new policy)2 – 8%
Retail Sales1 – 5%
Affiliate / Advertising5 – 30%
Recruiting / Staffing15 – 25% of first-year salary
Financial Advisors0.5 – 1% AUM / year

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