Commission Calculator
Calculate your sales commission based on sale amount, commission rate, and bonus. Determine your gross and net commission earnings after taxes.
Commission Results
| Gross Commission | $0.00 |
|---|---|
| Bonus Amount | $0.00 |
| Total Earnings | $0.00 |
| Tax Amount | $0.00 |
| Additional Fees | $0.00 |
| Net Commission | $0.00 |
About Commission Calculator
A commission is a payment that an employee makes based on a sale. Some employees earn commission in addition to their base income, while other employees work only on commission. When an employee earns a commission, they make a portion of the sale in income. For example, if an employee sells a couch for $500 and they get a 10% commission on all sales, then the employee earns $50 on that sale.
How to Calculate Commission
To calculate commission:
- Determine the sale amount (the total value of the sale)
- Find out the commission rate (what percentage the salesperson earns)
- Multiply the sale amount by the commission rate (as a decimal)
- Add any bonus amounts to get total earnings
- Subtract taxes and fees to get net commission
Commission Structures
There are several different types of commission structures:
- Base Salary + Commission: Employees receive a base salary plus commission on sales.
- Straight Commission: Employees earn only commission with no base salary.
- Residual Commission: Employees earn commission for as long as the customer continues to purchase.
- Graduated Commission: The commission rate increases as employees make more sales.
- Variable Commission: Different products or services have different commission rates.
Commission vs. Bonus
A commission is directly tied to sales performance, while a bonus is typically a one-time payment based on overall performance or company results. Some sales positions include both commission and bonus opportunities to incentivize both short-term sales and long-term performance.