Commission Calculator

Flat or tiered commission, with an optional split and base pay — see what a deal or a month of sales actually pays you.

Last updated: October 2026

This commission calculator handles the three plan structures you are most likely to meet. Flat rate: one percentage on all sales. Tiered by band (also called graduated or marginal): each rate applies only to the sales that fall inside its band, the way income tax brackets work. Tiered on the whole sale: once your total reaches a band, that band's rate applies to every dollar. On the same sales total, the two tiered methods can pay very different amounts. Read your plan document carefully to see which one it uses. If you share the commission — a real estate agent splitting with a brokerage, or a team pooling commission — set your split percentage. Add base pay to see total earnings for the period. For flat plans, enter a target and the calculator works backwards to the sales you need.

How to Calculate Commission

1. Flat rate: commission = sales × rate. 2. Tiered by band: split sales across the bands, multiply each slice by its rate, and add them up. 3. Tiered on the whole sale: find the band your total falls in and apply that one rate to all sales. 4. Apply your split: your commission = gross commission × your split %. 5. Add base pay for total earnings. Effective rate = your commission ÷ sales.

Formula

Flat:            Commission = Sales × Rate%
Tiered (band):   Commission = Σ (sales inside band i × Rate_i%)
Tiered (whole):  Commission = Sales × Rate% of the band Sales falls in

Your commission = Commission × Split%
Total pay       = Base pay + Your commission
Effective rate  = Your commission ÷ Sales × 100
Sales needed    = Target ÷ (Rate% × Split%)        (flat plans)

Commission Examples

Example 1 — Flat 5% on $50,000 of sales

$50,000 × 5% = $2,500 commission
With $3,000 base pay: total pay $5,500 · effective rate 5%

Example 2 — Tiered: 5% to $10k, 7% to $25k, 10% above; $30,000 sales

By band:   $10,000 × 5% = $500
           $15,000 × 7% = $1,050
            $5,000 × 10% = $500
           Total $2,050 (6.83% effective)

Whole sale: $30,000 falls in the 10% band → $3,000

Example 3 — 3% commission on a $400,000 home, 70% split

Gross: $400,000 × 3% = $12,000
Your share: $12,000 × 70% = $8,400
Effective rate on the sale price: 2.1%

Commission Plan Tips

› Ask whether tiers are marginal (by band) or retroactive (whole sale). On the same sales, the difference can be thousands.
› Check whether commission is calculated on revenue, gross profit or collected payments. This calculator assumes the sales figure you enter is the commission base.
› If you set prices, see how commission and your markup interact. Commission paid on price comes out of margin.
› For restaurant and hospitality incentive plans, compare against food cost targets.

Frequently Asked Questions

How do you calculate a 10% commission? +

Multiply the sales amount by 0.10. On $8,000 of sales, a 10% commission is $800. If you split commission with someone, multiply again by your share: at a 60% split, you keep $480.

What is a tiered commission structure? +

A plan where the rate rises as sales increase. In a graduated plan, each rate applies only to the sales inside its band. In a whole-sale (retroactive) plan, reaching a higher band raises the rate on all sales. Pick the matching mode above.

How is real estate commission split? +

The total commission (a percentage of the sale price) is usually divided between the buyer's and seller's brokerages, and each agent then splits their side with their brokerage. Enter the commission percentage your side receives and your personal split to see your share. Rates and splits are negotiable and vary by agreement.