Commission Calculator

Calculate sales commission earnings for any commission rate and sales amount.

Commission Calculator

Commission Earned

₹25,000

Total Earnings

₹55,000

(incl. base salary)

Commission Rate

5%

Sale Amount₹5,00,000
Base Salary₹30,000
Commission₹25,000
Total Pay₹55,000

Commission Calculator Formula & How It Works

Commission = Sales Amount × Commission Rate / 100 | Total Earnings = Base Salary + Commission
  • Flat rate: same % on all sales
  • Tiered: higher % on sales above quota
  • Gross margin: commission based on profit, not revenue
  • Draw vs commission: advance against future earnings

Commission is a percentage of sales paid as compensation. Structure types: straight commission (100% commission, no base), base + commission (most common), tiered commission (higher rates for exceeding quota), and profit-based (% of gross margin). Real estate agents typically earn 2.5–3% commission on property sales.

Commission Calculator FAQs

What is a typical commission rate for sales?

Commission rates vary widely by industry: retail 1–5%, insurance 2–8%, software/SaaS 8–12%, real estate 2.5–3% per side, financial advisor 0.5–1% of AUM. High-ticket items with longer sales cycles typically have higher commission rates.

How is real estate commission calculated?

Traditional: 5–6% of home sale price, split equally between buyer's and seller's agents (2.5–3% each). On a $400,000 home, total commission is $20,000–$24,000. Post-NAR settlement (2024), buyer's agent compensation is separately negotiated.

What is an OTE in sales compensation?

OTE (On-Target Earnings) is total expected compensation when sales quota is 100% achieved: Base Salary + Target Commission. If OTE is $100,000 with $60,000 base, the target commission is $40,000 — earned when 100% of quota is hit.

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