Commission Calculator: Find Commission Amount, Sales Target & Rate
Calculate commission amounts, required sales targets, or implied rates. Free, runs in your browser β no account needed.
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How Commission Works
A commission is a percentage of a sale price paid to the person who facilitated the sale β an agent, salesperson, broker, or advertiser. The fundamental formula is:
Commission = Sale Price Γ Commission Rate
For multiple sales: Commission = Total Sales Γ 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 β 100% of earnings come from commission. High risk, high reward.
- Base + commission β a guaranteed salary plus a commission on top. Most common in B2B sales.
- Tiered commission β the rate increases as sales volume grows. Rewards top performers disproportionately.
- Draw against commission β an advance on future commissions, repaid out of earned commission.
- Residual commission β ongoing payments for recurring contracts (common in insurance and SaaS).
The three calculation modes
Switch between modes with the tabs at the top depending on which number you're missing. Find Commission takes a sale price, a number of sales, and a rate, and tells you how much commission that adds up to, plus a split bar showing what share goes to commission versus what the business keeps. This mode also includes an optional base salary field, so you can see total earnings if your compensation combines a guaranteed wage with commission on top. Find Sales Target runs the math in reverse: enter how much commission you want to earn and the rate you're paid, and it tells you the total sales volume you need to hit that number, optionally divided across a set count of deals. Find Rate works backward from a sale price and a commission amount you already know, useful when you're trying to reverse-engineer what rate a partner or platform pays you.
Tiered commission, explained
Open the Tiered Commission panel in Find Commission mode to model a rate that changes with volume. Each tier has a starting point, an ending point, and its own rate, and the calculator applies each rate only to the portion of sales that falls within that band, not to the whole total. Sell $30,000 against tiers of 5% up to $10,000, 8% from $10,000 to $25,000, and 12% above that, and you earn 5% on the first $10,000, 8% on the next $15,000, and 12% on the final $5,000, not 12% across the board. The panel totals the tiered result and compares it against a flat-rate calculation using the same total sales, so you can see exactly how much a tiered structure gains or costs you relative to a single flat rate.
Tips for accurate numbers
- β’Confirm whether your rate applies to gross sale price or net revenue after discounts and returns. The two produce meaningfully different commission totals.
- β’If you're paid on multiple deals with different prices, run Find Commission per deal rather than averaging, unless every deal genuinely shares the same sale price.
- β’When setting a sales target, remember the required sales figure is revenue you need to close, not commission you'll take home; the business keeps the rest.
- β’Use Find Rate to sanity-check a commission statement. If the implied rate doesn't match your contract, that's worth a conversation before you sign off on it.
Who uses each mode day to day
A sales rep closing deals reaches for Find Commission at the end of the month to project their paycheck before it lands, plugging in each closed deal's value and their contracted rate. A sales manager setting quotas for the coming quarter uses Find Sales Target in reverse: given what the team needs to earn to hit payroll and margin goals, how much revenue does the floor need to close. A business owner negotiating a referral partnership uses Find Rate to check whether a proposed flat fee on a large deal works out to a reasonable percentage before agreeing to it, since a $2,000 flat fee sounds generous until you realize it's 1% on a $200,000 contract.
Commission and taxes
Commission counts as taxable income the same as a salary, but many employers withhold it differently, sometimes at a flat supplemental rate that doesn't match your regular bracket. If you're a straight-commission earner or work as an independent contractor receiving 1099 income, build your own withholding estimate rather than assuming your take-home matches the commission figure this calculator produces. The numbers here show what you're owed before taxes, not what lands in your bank account after them.
Related: Freelance Rate Calculator to build your full hourly rate including overhead and tax, or Profit Margin Calculator to check margin on each sale.
Typical commission rates by industry
Frequently Asked Questions
Is the Commission Calculator free?
Yes β completely free. No account and no data sent to a server.
Does it store my data anywhere?
No. All calculations happen in your browser. Nothing is transmitted to any server.
Do I need an account?
No account, no login, and no signup required.
What is the difference between tiered and flat commission?
Flat commission applies the same rate to every sale regardless of volume. Tiered commission increases the rate as sales volume grows β for example, 5% on the first $50k and 8% on everything above. Tiered structures reward high performers disproportionately.
What is a draw against commission?
A draw is an advance on future commission earnings. The rep receives a guaranteed minimum payment upfront, then repays it from commission earned later. It provides income stability for new sales staff while maintaining commission-based incentives.