Commission Calculator
Calculate sales commission and total pay from sales amount, commission rate and base salary.
How commission is calculated
Commission = Sales × Commission rate ÷ 100
Selling $85,000 at a 5% commission earns $4,250. With a $2,500 base salary for the period, total pay is $6,750.
Common commission structures
- Straight commission: pay is only commission. Common in real estate and some sales roles.
- Base plus commission: a fixed salary with commission on top, the most common arrangement.
- Tiered: the rate rises once you pass sales targets.
- Draw against commission: an advance that is repaid from future commission.
Real estate commissions
US home sale commissions have historically been around 5–6% of the price, split between the buyer's and seller's agents and then with their brokerages. Rules changed in 2024 so that commissions are negotiated more openly; ask agents to state their fee in writing.
Frequently asked questions
How do I calculate a 3% commission?
Multiply sales by 0.03. On $200,000 that is $6,000.
Is commission taxed differently?
Commission is ordinary income, but employers often withhold federal tax on it at a flat 22% as supplemental wages.
What is a good commission rate?
It depends on the industry and product price; 5–10% is common for many sales roles.
Last reviewed October 2026. Results are estimates; check important decisions with a qualified professional.