Commission Calculator
Calculate sales commission earnings and commission structures
Commission Calculator
The Commission Calculator can compute any one of the following, given inputs for the remaining two: sales price, commission rate, or commission for a simple percentage commission structure.
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🧮 Simple Commission Calculator
📊 Result
Steps:
Note: This calculator uses a simple commission structure. For more complex commission calculations including tiered rates and base amounts, use the Tiered Commission Calculator below.
📊 Tiered Commission Calculator
This calculator can calculate more complex commission structures, including tiered commissions and commissions that include a base amount.
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📚 Understanding Commissions
What is a Commission?
In sales, a commission is a form of payment that salespeople earn that is tied to how much of a service or a product they sell. Commissions are a method used to motivate salespeople, since the amount they sell directly impacts the amount that they can earn.
Commission Only
In a commission only structure, a salesperson's compensation is based entirely on their sales. They receive some percentage of the revenue. For example, a real estate agent may receive 3% of the house's price.
Base Salary Plus Commission
In this structure, a salesperson earns some base salary plus a commission based on sales made. This provides security while still motivating sales performance.
Different Commission Structures
There are many different types of commission structures. In some cases, commissions may be reduced when discounts are granted, making salespeople less likely to provide discounts to make a sale. In others, salespeople might gain commissions based on repeat customers, motivating them to retain customers.
Tiered Commission
In a tiered commission structure, commission changes based on the total amount of sales made. For example, a salesperson may earn a 3% commission on sales between $0-20,000. For sales between $20,000-25,000, they may earn a 5% commission, and for sales between $25,000-30,000, they may earn a 10% commission.
Note that this does not mean that a salesperson who sells $27,000 worth of product would earn 10% of $27,000. They only earn 10% on the amount above $25,000. So a salesperson who sells $27,000 worth of product would receive: