Commission Calculator

This commission calculator works out the commission earned on a sale from sales and a percentage, or the sales you need to reach a target payout. With sales of 25,000 at 3.5%, the commission is 875 and 24,125 is left after paying it.

Example: What do you want to calculate: Commission from sales and rate · Sales 25,000 · Commission rate 3.5 % · Base salary or fixed fee (optional) 0 → Result: Commission: 875.00. Source: Wikipedia – Commission (remuneration): flat, tiered and retroactive commission. Updated: .

The amount the commission is based on, usually net sales.
%
A fixed amount paid in addition to the commission.
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Result

Result
Commission: 875.00
Details
  • After the commission, 24,125.00 of the sales remain.
How it is calculated
Sales × rate ÷ 100 = 25,000.00 × 3.5% ÷ 100 = 875.00

How it is calculated

How to calculate commission

Commission is a percentage of sales: commission = sales × rate ÷ 100. With sales of 25,000 at 3.5% that is 875. To find the sales needed for a target, turn it around: commission × 100 ÷ rate, so 875 at 3.5% needs sales of 25,000. A base salary is simply added on top.

Tiered commission

With tiers the rate rises as sales grow. Two designs are common:

What counts as sales

Your contract decides the base: net or gross amount, before or after returns and discounts. Enter the amount your agreement names as the basis for the calculation.

Limits

The calculator uses the amount you enter. Cancellations, unpaid invoices, timing of payment and splits between several sellers are not included. The result does not replace a check of your contract.

Frequently asked questions

How do you calculate commission as a percentage?

Multiply sales by the commission rate and divide by 100. For 12,000 in sales at 5% the commission is 600.

How do I calculate commission in Excel?

Use a formula like =B2*C2 with the rate as a decimal (0.035) or a cell formatted as percent. Tiered rates need several conditions, which this calculator handles for you.

What is the difference between marginal and retroactive tiers?

With marginal tiers each rate only applies to the sales inside its band. With retroactive tiers the rate reached applies to all sales, so the payout jumps at each threshold.

Is commission calculated on net or gross sales?

That is set in the contract. Often it is the net amount. Enter the figure your agreement names as the basis.

Sources and legal basis

As of:

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