How much commission you earn
Commission is a percentage of the sale you close: Commission = sale amount × commission rate ÷ 100. On a $10,000 sale at a 5% rate, that is 10,000 × 0.05 = $500. If you also get a base salary, your total pay is base plus commission. Commission is a straight percentage of sales, the same operation as the percentage calculator.
How to use this calculator
Enter the sale amount, your commission rate, and any base pay for the period (leave it at 0 for commission-only). The result shows the commission earned and your total pay, so you can check a paycheck or forecast earnings from a deal.
Commission at different rates
On a $10,000 sale, the rate changes your payout sharply: Sellers paying the commission should check what it leaves them using the gross profit margin calculator.
| Rate | Commission |
|---|---|
| 2% | $200 |
| 5% | $500 |
| 10% | $1,000 |
| 15% | $1,500 |
| 20% | $2,000 |
Common commission structures
Plans vary: straight commission (no base, all percentage), base plus commission (a salary floor plus a rate), and tiered (a higher rate after you pass a quota). This calculator handles a single flat rate plus an optional base — for tiered plans, run each tier separately and add the results.
Commission vs. your total compensation
Commission can swing your income a lot from period to period, so it helps to know your steady numbers too. To see what your base works out to hourly, use the salary to hourly calculator; to project a full year of earnings, the annual income calculator. Figures here are gross, before tax.
These figures are an estimate for general information only and are not financial advice; consult a qualified professional before making money decisions.
Frequently asked questions
- How do I calculate commission?
- Multiply the sale amount by the commission rate as a decimal. A 5% commission on a $10,000 sale is 10,000 × 0.05 = $500.
- What is commission on $10,000 at 5%?
- $500. Add any base pay to get your total for the period.
- What is the difference between straight and base-plus commission?
- Straight commission pays only a percentage of sales with no salary. Base-plus commission pays a fixed salary plus a percentage on top.
- How do I handle tiered commission?
- Calculate the commission for each tier at its own rate, then add them together. This tool covers one flat rate plus an optional base.
- Is commission taxed differently?
- Commission is taxable income. Employers often withhold it at a higher flat supplemental rate, but your actual tax depends on your total annual income.