How it works
How to calculate sales commission
Add each sale
Enter each deal with its sale amount and commission rate. Different products or deal sizes can have different rates -- the calculator handles them individually.
Set fees and deductions
Add a global fee percentage (like a brokerage split or platform cut) and any fixed deductions (like monthly desk fees). These get subtracted from your gross commission.
See gross and net commission
Get your total sales, gross commission before fees, and net commission after everything is taken out. That net number is what you actually earn.
Getting the most out of your commission
Some practical things to keep in mind when working on commission.
Bigger deals are not always better
A $12,000 deal at 10% earns you $1,200. Three $4,000 deals at 15% earn you $1,800. Run the numbers before chasing the biggest deal on the board.
Know your effective rate
After global fees and fixed deductions, your actual rate is lower than the headline number. If you earn 12% but lose 3% to fees and $50 fixed, your effective rate on a $5,000 sale is about 9.5%.
Fixed deductions hurt small months more
A $50 desk fee barely dents a $5,000 commission month. But on a $500 commission month, it takes 10%. Keep that in mind during slow periods.
Negotiate fees when you have volume
If you consistently hit high numbers, you have leverage to negotiate lower global fees. Even 1% off a 3% fee saves $30 for every $1,000 in commission.
Track commission monthly
Run this calculator at the end of each month to see your actual earnings. Comparing months helps you spot patterns in which deal types and rates work best for you.
Ask about draws and advances
Some commission structures include a recoverable draw, an advance against future earnings. If your commission does not cover the draw, you owe the difference. Factor that into your planning.
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FAQ
Questions, answered
A payment you earn based on the value of deals you close. If you sell $10,000 worth of product at a 12% rate, your commission is $1,200. It is the core incentive in most sales roles.
Sale amount times commission rate divided by 100. So $4,500 at 12% is $4,500 x 12 / 100 = $540. This calculator does it for each deal separately then adds them up.
Gross is your total commission before anything gets taken out. Net is what remains after global fees (like a brokerage split) and fixed deductions (like desk fees). Net is the number that hits your bank account.
It varies by industry. Retail is usually 1-5%. SaaS and B2B can run 10-30% or higher. Real estate is commonly 2.5-3% per side. The rate alone does not tell you much -- you need to look at deal size and closing frequency together.
A percentage deducted from your total gross commission. Common examples: brokerage splits in real estate, franchise royalty fees, platform processing charges. It applies across all your deals, not per sale.
Yes. Each line item has its own rate. This handles situations where you earn 10% on one product category and 15% on another, or where large deals have different rates than small ones.
An advance your employer pays against future commission. If your draw is $3,000 per month but you only earn $2,000, you owe the $1,000 difference. It is like a loan against your future sales.
Monthly at minimum, or whenever your pay period closes. Running the numbers regularly helps you spot which deal types earn the most and whether fees and deductions are eating too much of your earnings.
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