Commission Calculator

What this commission calculator does

This calculator estimates the commission earned on a sale from the sales price and commission rate. It is useful for real estate, sales, and other percentage-based compensation.

The result shows the commission amount and the rate used. It does not include base salary, tiered rates, splits, or taxes.

How to use this calculator

1. Enter the sales price.
2. Enter the commission rate as a percentage.
3. Click Calculate.

The default example uses a $200,000 sale at a 3% commission rate. The commission is $6,000.

Commission formula

Commission = Sales price × Commission rate / 100

The commission rate must be between 0% and 100%. A zero rate produces zero commission.

What the results include

• Sales price: the transaction amount.
• Commission rate: the percentage used.
• Commission: the compensation earned.

Assumptions and limitations

The calculator uses a single flat commission rate. It does not model tiered commissions, base salary plus commission, broker splits, transaction fees, taxes, or refunds. The reference page also includes a tiered commission calculator; that mode is not included in this version.

Frequently asked questions

How do I calculate a 3% commission?

Multiply the sales price by 0.03. A $200,000 sale at 3% produces a $6,000 commission.

What is a tiered commission?

A tiered commission pays different rates on different portions of the sales price. This version uses one rate for the entire sale.

Does the calculator include taxes?

No. Commission is shown before income tax and self-employment tax.

Can the commission rate be above 100%?

No. A rate above 100% is rejected because it would exceed the sale amount.

Reference table

Tiered commission example

Tiered plans apply each rate only to the portion of sales inside that band. A flat plan applies one rate to the whole amount.

Source

References:

• U.S. Small Business Administration — Financial Statements
• IRS — Small Business and Self-Employed

Disclaimer

This calculator is for informational purposes only. It is not tax or legal advice. Confirm commission terms in the applicable agreement.