Commission Calculator
Commission earned on sales.
Reviewed by the Calculation Machine team · Updated 24 October 2026 · How we check our maths
Your values
ⓘ Live results
- Your commission
- $5,250.00
- Gross commission
- $7,500.00
- Split kept by house
- $2,250.00
- Total earnings with base
- $5,250.00
- Effective rate on sales
- 2.1%
Quick answer
Commission is sales × commission rate. If you share commission with a brokerage or employer, multiply the result by your split percentage. On $250,000 in sales at 3%, gross commission is $7,500; with a 70% split you keep $5,250, an effective 2.1% of the sale. Add any base salary for the period to get total pay before tax.
What the Commission calculator does
This calculator works out commission earned from a sales figure and a commission rate, then applies your split and adds base salary. It suits real estate agents on a brokerage split, salespeople on base plus commission, recruiters, and affiliate marketers paid a percentage of referred sales.
The effective rate output shows what you actually keep as a percentage of sales, which is the number to compare when weighing two brokerages or two job offers with different rates and splits.
The calculator handles flat-rate commission, where one rate applies to all sales. For tiered plans, run each tier separately and add the results, as shown below. Results are before tax; commission is usually taxed as ordinary income, and the bonus tax calculator shows how employers often withhold on it.
The formula
Gross commission = sales × rate ÷ 100 Your commission = gross commission × split ÷ 100 Total earnings = your commission + base salary Effective rate = your commission ÷ sales × 100
| Symbol | Meaning | Unit |
|---|---|---|
| sales | Sales volume the commission is paid on: sale price, contract value or referred revenue | $ |
| rate | Commission rate applied to sales | % |
| split | Share of gross commission you keep after the brokerage or house takes its cut; 100 if there is no split | % |
| base | Fixed salary or draw for the same period | $ |
These are the standard straight-commission and split calculations. Some plans pay commission on gross margin rather than revenue; enter the margin dollars as sales in that case. A draw against commission is an advance that is repaid out of later commission, so it is not the same as base salary; leave base at 0 and subtract the draw from your commission instead.
Worked examples
Real estate agent on a 70/30 split
An agent's side of a $450,000 home sale pays 2.5%, and the agent keeps 70% under their brokerage agreement.
Inputs
- Sales volume450000 $
- Commission rate2.5 %
- Your split70 %
- Base salary (period)0 $
Result
- Your commission$7,875.00
- Gross commission$11,250.00
- Split kept by house$3,375.00
- Total earnings with base$7,875.00
- Effective rate on sales1.75%
$11,250 gross, of which the agent keeps $7,875. Brokerage fees, desk fees and transaction fees may come out of that, so check your agreement before counting on the full figure.
Salesperson on base plus commission
A sales rep earns $4,000 a month base plus 8% of the $60,000 they sold this month.
Inputs
- Sales volume60000 $
- Commission rate8 %
- Your split100 %
- Base salary (period)4000 $
Result
- Your commission$4,800.00
- Gross commission$4,800.00
- Split kept by house$0.00
- Total earnings with base$8,800.00
- Effective rate on sales8%
$4,800 commission for $8,800 total pay this month. Commission makes up over half of pay here, so a slow month would cut income sharply.
Affiliate earnings
A blogger's affiliate links drove $3,200 of sales in a month on a 10% commission program.
Inputs
- Sales volume3200 $
- Commission rate10 %
- Your split100 %
- Base salary (period)0 $
Result
- Your commission$320.00
- Gross commission$320.00
- Split kept by house$0.00
- Total earnings with base$320.00
- Effective rate on sales10%
$320 in commission. Affiliate programs often reverse commission on returned or canceled orders, so expect the paid amount to be slightly lower than the reported figure.
Calculating tiered commission
Tiered (graduated) plans pay a higher rate once sales pass a threshold. In most plans the higher rate applies only to sales above the threshold, like tax brackets. For example, 5% on the first $50,000 and 8% above it, on $80,000 of sales:
- Tier 1: $50,000 × 5% = $2,500
- Tier 2: $30,000 × 8% = $2,400
- Total: $4,900, an effective 6.1%
To do this here, enter each tier's sales and rate separately and add the results. Some plans are retroactive, paying the higher rate on all sales once you reach the tier; on the same $80,000 that would be $6,400. Read the plan wording carefully, because the difference is large.
Common commission structures
Most commission plans are a variation on one of these. The last column shows how to model each one with this calculator's four inputs. If you are comparing commission work with charging clients directly, the freelance hourly rate calculator shows what rate covers your costs.
| Structure | How it pays | Enter here as |
|---|---|---|
| Straight (flat-rate) commission | One percentage of all sales | Rate, split 100, base 0 |
| Base plus commission | Fixed salary plus a percentage | Rate and base for the period |
| Brokerage split | Gross commission shared with the broker | Rate and your split % |
| Tiered or graduated | Higher rate above set thresholds | One run per tier, then add |
| Gross-margin commission | Percentage of profit, not revenue | Margin dollars as sales |
| Affiliate or referral | Percentage of referred sales | Referred sales and program rate |
Tax on commission income
In the US, commission paid to employees is treated as supplemental wages. Employers can withhold federal income tax at a flat rate (22% for supplemental wages up to $1 million in a year under current IRS rules) or combine it with regular pay; either way it is ordinary income and the true tax is settled on your return.
Self-employed agents and affiliates receive commission without withholding and usually owe self-employment tax and quarterly estimated payments. The self-employment tax calculator estimates that liability. Rules vary by country, so check with a tax professional if commission is a large share of your income.
How to use the Commission Calculator
- 1Enter the sales volume the commission is paid on: sale price, invoice total or referred revenue.
- 2Enter your commission rate as a percentage, for example 3 for 3%.
- 3Enter your split: the percentage of gross commission you keep (100 if there is no split).
- 4Add base salary for the same period if you have one, then read your commission, total pay and effective rate.
Frequently asked questions
How do you calculate commission on a sale?
Multiply the sale amount by the commission rate. A 5% commission on a $12,000 sale is $12,000 × 0.05 = $600.
What is a 70/30 commission split?
You keep 70% of the gross commission and the brokerage or company keeps 30%. On $10,000 of gross commission, you would receive $7,000.
How do I work out my commission rate?
Divide the commission earned by the sales amount and multiply by 100. $1,800 on $45,000 of sales is a 4% rate.
Is commission taxed at a higher rate?
No. It is ordinary income, but employers often withhold at a flat supplemental rate, which can be more or less than you will actually owe. Any difference is settled when you file your return.
What is a typical real estate commission split?
Splits vary by brokerage and experience; new agents often start around 50/50 or 60/40, while experienced agents may keep 70–90% or pay a flat fee instead. Commission rates on home sales are negotiable, not set by law.
References
- Publication 15 (Circular E), Employer's Tax Guide — Internal Revenue Service
- Publication 334, Tax Guide for Small Business — Internal Revenue Service
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
- Last reviewed: October 24, 2026
- Report an error