Fill in any two of the three fields below and leave the one you want to solve for blank.
Result
Calculate more complex commission structures, including tiered rates and a base commission.
Define the tiered commission structure below. Each tier's rate applies only to the portion of the sale price that falls within that range (like tax brackets). Leave the last "To" value blank for no upper limit.
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Result
What this calculator does
Commission is pay based on what you sell. This tool works it out two ways. Simple mode uses one flat rate: enter any two of sale price, rate and commission, and it solves for the third. Tiered mode handles plans where the rate goes up as sales grow, and it can add a fixed base amount on top.
It is useful for sales staff checking a pay slip, managers testing a new pay plan, and freelancers or agents who quote a percentage fee.
Formula
Simple commission: Commission = Sale price × Rate ÷ 100
Rearranged, Rate = Commission ÷ Sale price × 100, and Sale price = Commission ÷ (Rate ÷ 100).
Tiered commission: each tier’s rate applies only to the part of the sale that falls inside that tier, the same way tax brackets work. Total = base commission + the sum of (amount in each tier × that tier’s rate).
Worked examples
Example 1 — flat rate. You sell $25,000 of products at a 4% rate. Commission = $25,000 × 0.04 = $1,000.
Example 2 — finding the rate. You were paid $1,200 on $30,000 of sales. Rate = $1,200 ÷ $30,000 × 100 = 4%.
Example 3 — tiered plan with a base. The plan pays 3% on the first $50,000, 5% on anything above it, plus a $500 base. On $80,000 of sales: $50,000 × 3% = $1,500, then $30,000 × 5% = $1,500. Total = $500 + $1,500 + $1,500 = $3,500. Note that the 5% rate does not apply to the whole $80,000 — only to the $30,000 above the first tier.
Commission and tax
In the US, commission is treated as wages. Employers often withhold federal income tax on it as a “supplemental wage” — the IRS sets a flat 22% option for supplemental wages up to $1 million in a year (IRS Publication 15). Social Security and Medicare taxes also apply. Withholding is only a prepayment: your real tax is settled on your annual return. This calculator shows the gross commission before any tax. Use our Income Tax Calculator to estimate the yearly tax.
Salary plus commission
Many jobs pay a base salary plus commission. To compare offers, add the yearly base to the commission you expect at a realistic sales level, not the best-case level. For example, a $40,000 base plus 5% on $300,000 of yearly sales gives $40,000 + $15,000 = $55,000 gross pay. Try a low, middle and high sales figure to see the range.
Other commission structures
- Straight commission: no base pay; income depends fully on sales.
- Draw against commission: you get an advance that is later taken out of earned commission.
- Gross margin commission: the rate applies to profit, not the sale price. Our Margin Calculator helps find the profit first.
- Split commission: one commission is shared between two or more people, such as a listing agent and a buyer’s agent.
Always check your written pay plan, since rules on returns, cancelled orders and payment timing differ between employers.
Frequently Asked Questions
Multiply the sale amount by the commission rate. For example, $10,000 × 5% = $500.
Divide the commission by the sale amount and multiply by 100. $750 on $15,000 is a 5% rate.
Each rate applies only to the part of the sale inside its tier. With 3% up to $50,000 and 5% above, an $80,000 sale earns $1,500 + $1,500 = $3,000.
No. It is taxed as wages, but employers may withhold federal tax on it at a flat 22% supplemental rate. The final tax is worked out on your yearly return.
Tiered mode lets you add a fixed base commission. For a yearly salary, add it to the result yourself.
Disclaimer: This calculator gives estimates for general information only. It is not financial, tax or legal advice. Results depend on the numbers you enter and on simplified assumptions, so your actual figures may differ. Check important decisions with a qualified professional or the official source.
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