How to use the commission calculator
- Flat rate: enter total sales and your rate, plus any base pay, to see your commission and total earnings.
- Tiered: enter your sales and up to three bands, each with its own rate.
- Sales needed: enter the commission you want to earn to see how much you need to sell.
It works for sales staff, estate agents, recruiters and affiliate marketers alike.
Commission formulas
Flat commission = Sales × Rate ÷ 100
Sales needed = Target commission ÷ (Rate ÷ 100)
With tiered commission, the sales are split into bands and each band is multiplied by its own rate, then the results are added up.
Worked examples
Flat: 50,000 in sales at 5% earns 2,500 commission. With a 2,000 base salary, total pay is 4,500.
Tiered: 40,000 in sales, with 5% on the first 10,000, 7% from 10,000 to 25,000 and 10% above:
- 10,000 × 5% = 500
- 15,000 × 7% = 1,050
- 15,000 × 10% = 1,500
Total 3,050, an effective rate of 7.63% on all sales.
Sales needed: to earn 3,000 at 6%, you need 3,000 ÷ 0.06 = 50,000 in sales.
Two kinds of tiered commission
Graduated (marginal): each rate applies only to the sales within its band, like income tax brackets. This calculator uses this method, and it's the most common.
Retroactive (all-sales): once you pass a threshold, the higher rate applies to all your sales. This pays more at the top but creates big jumps at each threshold. Check which one your plan uses.
Frequently asked questions
What's a typical commission rate?
It varies widely by industry and by how much of your pay is salary. Rates in the low single digits are common for high-value sales, and higher rates are common where there's little or no base pay. Your contract or plan document is the only reliable source.
Is commission calculated on revenue or profit?
Usually on revenue (the sale price), but some plans pay on gross profit or margin instead. If yours does, enter the profit figure as "Total sales".
Can I use this for affiliate commissions?
Yes. Enter the sales you referred and the program's commission rate. Some affiliate programs pay a fixed amount per sale instead; in that case multiply that amount by the number of sales.
Formulas checked 29 October 2026. This calculator is for planning and education, not financial, tax or legal advice.