Calculate sales commission from a sale amount and commission rate.
Flat-rate commission is straightforward: commission = sale amount × commission rate. This is the most common structure for real estate, retail sales, and many straightforward sales roles.
This differs from markup or margin calculations, which are about pricing a product relative to its cost — commission is calculated on the total sale price itself, regardless of what the item cost to produce or acquire.
Some roles use tiered commission structures instead, where the rate increases at higher sales volumes — this calculator covers the flat-rate case, the most common baseline structure.
A $50,000 sale at a 6% commission rate earns $3,000 in commission.
Commission is typically calculated on the gross sale price before taxes are applied, though specific contracts and industries can vary — check your own commission agreement for the exact base.
Tiered structures apply different rates to different portions of the sale (e.g., 5% on the first $20k, 8% beyond that) rather than one flat rate on the whole amount — this tool covers the simpler flat-rate case.
In the US, commission is often treated as supplemental wages and can be withheld at a different flat rate than regular pay, though the actual tax owed at year-end depends on total annual income.