Commission Calculator
Calculate sales commission earned and the net amount going to the seller.
About the Commission Calculator
Commission-based pay ties earnings directly to sales performance, common in real estate, retail, and sales roles across many industries. This calculator computes the commission earned on a sale and the net amount the seller or business retains after that commission is paid out.
How It Works
The calculator multiplies the total sale amount by the commission rate to find the commission earned, then subtracts that commission from the sale amount to show the remaining net proceeds.
Commission = Sale Amount × Commission Rate; Net to Seller = Sale Amount − Commission.
Worked example
Scenario: A $12,000 sale at a 6% commission rate.
- Commission: $12,000 × 6% = $720.
- Amount left after commission: $12,000 − $720 = $11,280.
Result: $720 of commission, leaving $11,280.
Commission plans can have tiers and rules
A simple percentage commission is straightforward, but real plans may include thresholds, tiers, caps, accelerators, clawbacks, or different rates by product. Use the calculator for the stated rate and check the actual compensation plan for exceptions.
Tips and common mistakes
- For tiered plans, calculate each tier separately and add the results.
- In real estate, the 6% is often split between the buyer's and seller's agents and then with their brokerages.
- Commission is usually taxed as ordinary income.
Assumptions & Limitations
- Assumes a single flat commission rate applied to the entire sale amount.
- Does not assume any commission caps, tiers, or splits between multiple agents.
- Tiered commission structures (different rates above certain thresholds) require running each tier separately.
- Does not account for commission clawbacks or chargebacks on cancelled sales.