Sales Commission Calculator

The commission earned on a sale and the amount left over.

Result

Commission

100,000

Net (after commission)

900,000

How it works

Commission = sale × rate

A commission is pay proportional to a sale: commission = sale × rate. On a 2,000 sale at 5%, the seller earns 100 and the remaining 1,900 is the net amount left after the commission is paid out. The same arithmetic runs through many worlds: sales reps' variable pay, real-estate agent fees, marketplace and platform cuts, brokerage fees and affiliate revenue. What changes is who pays whom — a rep receives the commission, while a seller on a marketplace gives it up. This calculator applies one flat rate. Many real pay plans are tiered: the rate climbs once revenue crosses thresholds (say 5% up to 10,000 then 8% beyond). To model a tiered plan, run each bracket separately at its own rate and add the results.

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Frequently asked questions

How is commission calculated?

Multiply the sale amount by the commission percentage — 10% of 1,000,000 is 100,000.

What is the net amount?

The sale minus the commission — what is left after the salesperson is paid.

How do tiered commission plans work?

The rate changes by revenue bracket — for example 5% on the first 10,000 and 8% beyond. Compute each tranche at its own rate and sum them; some plans instead apply the top rate retroactively once a threshold is crossed.

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