Commission Calculator
Calculate commission from a sales amount and commission rate, work out the sales needed to earn a target commission, or calculate the commission rate from known sales and earnings.
Commission details
Target commission details
Commission rate details
Calculation details
Worked calculation
How to calculate commission
Sales commission is normally calculated by multiplying the value of qualifying sales by the commission percentage. A salesperson with £10,000 of qualifying sales at a 5% commission rate would earn £500 in commission.
Commission = Sales amount × Commission rate
What counts as qualifying sales?
Commission is not always calculated from the full value of every sale. A commission plan may define which sales qualify and whether the calculation is based on gross sales, net sales, revenue after discounts, profit, collected payments or another measure.
For example, a £10,000 sale does not necessarily produce commission on the full £10,000 if the commission agreement excludes taxes, shipping, discounts, refunds or other amounts.
Before using the calculator, check the commission plan or employment agreement to determine the sales amount to which the commission rate should be applied.
Commission with base pay
Some compensation plans combine commission with fixed base pay. If a bonus is also paid, total earnings can be estimated by adding the base pay, commission and bonus together.
Total earnings = Base pay + Commission + Bonus
How to calculate sales needed for a target commission
If you know how much commission you want to earn and the commission percentage, divide the target commission by the commission rate expressed as a decimal.
Required sales = Target commission ÷ Commission rate
How to calculate the commission rate
When both the sales amount and commission payment are known, divide the commission by the sales amount and multiply the result by 100.
Commission rate = (Commission earned ÷ Sales amount) × 100
Flat-rate vs tiered commission
This calculator uses a flat commission rate, meaning the same percentage is applied to the entire qualifying sales amount.
A tiered commission plan can use different rates as sales increase. For example, one rate might apply to the first £10,000 of sales and a higher rate to sales above that threshold. Some plans also use accelerators that increase the commission rate after a target is reached.
Tiered plans should be calculated according to the rules for each sales band rather than applying the highest rate to the full sales amount.
Gross commission and take-home pay
The commission and total earnings calculated here are gross amounts. They do not estimate income tax, National Insurance, payroll deductions, pension contributions or other deductions that may affect take-home pay.
The treatment of commission depends on the applicable employment, payroll and tax rules. If you are checking an actual commission payment, compare the result with the terms of the commission plan and the relevant payroll information.
Commission arrangements can vary between employers and contracts. For UK guidance on commission entitlement and employment terms, see Acas guidance on commission .
Important
Real commission plans may include thresholds, tiered rates, different rates for different products, caps, accelerators, clawbacks, taxes or other adjustments. This calculator assumes a single flat commission rate.
Commission calculator FAQs
What does a 5% commission mean?
A 5% commission means you earn 5 units of currency for every 100 units of qualifying sales. For example, 5% of £10,000 is £500.
How do I calculate a 10% commission?
Multiply the qualifying sales amount by 0.10. For example, 10% commission on £8,000 of sales is £800.
Is commission calculated before or after tax?
This calculator calculates gross commission before any tax or payroll deductions. The tax treatment of commission depends on the applicable payroll and tax rules.
Can commission include base pay and bonuses?
Yes. In the main calculator mode you can enter optional base pay and bonus amounts. These are added to the calculated commission to estimate total gross earnings.
Does this calculator support tiered commission?
No. This calculator currently assumes one flat commission rate for the full sales amount. Tiered commission plans require each sales band to be calculated separately.