Commission Calculator

Use our free Commission Calculator to quickly estimate your earnings from sales, commissions, and bonuses. Simply enter your total sales, commission rate, and any tiered or flat bonuses to see your total payout. Perfect for sales reps, brokers, and business managers, this tool helps you understand exactly how much you’ll earn from each deal or pay period. It eliminates confusion about percentages, thresholds, and performance tiers—so you can plan ahead and stay motivated to hit your goals.

Commission Formula

Commission = (Sales Amount × Commission Rate) + Bonus
Example:
If your sales amount is $10,000, commission rate is 5%, and bonus is $200 → (10,000 × 0.05) + 200 = $700

Understanding how commissions are calculated helps you forecast income, track performance, and negotiate fair compensation. Sales teams often deal with complex commission tiers, bonuses, and thresholds that can affect payouts significantly. Without a clear calculation, it’s easy to underestimate or overestimate earnings. Using a Commission Calculator ensures transparency by breaking down how each dollar of sales translates to earnings. Whether you work on flat, tiered, or residual commissions, this tool helps eliminate surprises and supports smarter goal setting.

How this commission calculator works

This calculator determines your earnings based on the type of commission structure you use. It can handle both simple flat-rate and complex multi-tier plans.

Inputs and logic:

Sales amount: Your total gross sales for the period.
Commission rate(s): The percentage paid per sale or per tier.
Bonus or threshold: Optional input for flat or performance-based bonuses.
Draw or base salary: Accounts for advances or guaranteed pay.
Output: Total commission, gross pay, and effective commission rate.

It adjusts calculations for tiered brackets, meaning you can see how increasing sales volume impacts your payout. This makes it ideal for comparing commission plans or tracking monthly earnings growth.

When to use this commission calculator

Use this calculator any time you need to understand or project sales-based earnings.

Before accepting a new role: Compare commission structures between employers.

During goal setting: See how much sales you need to reach your income target.

For payroll forecasting: Estimate total payouts for sales teams or agents.

When negotiating bonuses: Evaluate performance incentives or higher-tier rates.

For performance tracking: Monitor commissions by month or quarter to stay on target.

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Use ServiceAgent.ai to automate estimates, manage proposals, and track sales profitability—all from one dashboard.

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Average Commission Rates by Industry

Commission rates vary widely by field. Use these industry averages to compare compensation and set fair targets.

Real Estate Agents

2–6% of property sale price
net margin

Insurance Agents

5–15% of annual premium (renewals often 2–5%)
net margin

Car Sales Representatives

20–35% of gross profit per sale
net margin

Software Sales (SaaS)

8–15% of closed deal value
net margin

Financial Advisors / Brokers

1–5% of assets managed or trade value
net margin

Recruiters / Staffing Agencies

10–25% of candidate's first-year salary
net margin

Affiliate Marketers

5–30% per transaction or lead
net margin

These ranges help sales professionals and managers benchmark compensation structures and ensure pay aligns with industry norms.

Frequently Asked Questions

Multiply your total sales by your commission rate. For example, $10,000 in sales at 10% equals $1,000 in commission.

It varies by industry—typically 5–15% for most sales roles, but real estate and car sales can be higher.

A Commission Calculator is a tool that helps you quickly determine how much commission you earn based on your sales amount and commission rate. It saves time and ensures accurate calculations.

Absolutely! Businesses can use it to model different commission structures for their teams.

It helps automate commission tracking, proposals, and reporting to reduce manual work.

No, estimates are shown pre-tax. Add local taxes or deductions separately.

Yes, just input your custom commission percentages to reflect your structure.

Yes, you can use it for single deals or recurring commissions by entering the respective amounts.