Business
Commission Calculator
Work out commission earned from sales value and a commission rate percentage.
The result is the commission earned in dollars on the sales value entered at the rate entered, so higher sales or a higher rate gives a larger commission.
Formula
Commission = sales value multiplied by commission rate divided by 100.
How it works
Multiply the value of sales closed by the agreed commission percentage. Tiered or capped deals need a separate calculation per tier, but this flat-rate version covers most simple agreements.
Worked example
For example, $20,000 of sales at a 5% commission rate gives $20,000 x 5 / 100 = $1,000 of commission.
FAQs
Is commission paid on revenue or profit?
Usually revenue, but check the agreement: some deals pay on collected cash or on profit instead.
What about returns?
Returned sales are often clawed back, so confirm whether commission is adjusted when a sale is refunded.
Can rates be tiered?
Yes. Calculate each tier separately and add the results for the total.
Estimates only, not financial advice. Check your figures before making a business decision.
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