Commission Calculator

Commission = Sales Amount × (Commission Rate / 100). For a $50,000 sale with 5% commission: $50,000 × 0.05 = $2,500 commission.

Commission rates vary by industry. Real estate: 5-6% (split between agents), car sales: 20-25% of gross profit, insurance: 5-15%, retail: 1-5%, software sales: 10-20%. High-value, complex sales typically earn higher rates.

Tiered commissions increase as you hit sales targets. Example: 3% on first $50k, 5% on $50k-$100k, 7% above $100k. This incentivizes higher sales performance with increasing rewards.

It depends on the agreement. Most retail commissions are on gross sales. Business-to-business may use gross profit (after direct costs). Always clarify the commission base in your contract.