Commission Calculator
Calculate Commission
Calculate commission earned and total compensation
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Tiered Commission
Calculate commission with tiered rates
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Formula
Commission = Sales Amount × Commission Rate (%). Total Compensation = Base Salary + Commission.
Frequently Asked Questions
How is sales commission calculated?
Basic commission = Sales Amount × Commission Rate. For example, if you sell $100,000 at a 5% commission rate, your commission is $5,000. Some plans use tiered rates where higher sales volumes earn higher percentages.
What is a typical commission rate?
Commission rates vary widely by industry. Real estate agents typically earn 2.5-3%, car salespeople earn 20-25% of profit, SaaS sales reps earn 5-10% of contract value, and insurance agents may earn 5-20% of premiums.
What is the difference between commission and bonus?
Commission is directly tied to sales performance and is usually calculated as a percentage of each sale. Bonuses are typically lump-sum payments for meeting specific goals or milestones. Commission is variable; bonuses may be guaranteed or discretionary.
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