What is commission?
Pay calculated as a percentage of sales made. Sell 50,000 of product at 5% and you earn 2,500 in commission.
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Commission Calculator
Work out commission earned from a sales figure and rate, plus total pay including any base salary.
commission = sales × rate% ; total = base + commission
Frequently asked questions
What is a base-plus-commission structure?
A fixed salary topped up by commission. It gives sellers stability plus an incentive to sell more. Enter a base pay to see total earnings.
Why do companies pay commission?
To align pay with performance: the more a salesperson brings in, the more they earn, which motivates effort and rewards results.
Can commission rates vary?
Often yes, with tiers that pay a higher rate once targets are passed. This calculator uses a single flat rate, which covers the common case.
Is commission taxed?
Yes, it is income like any other and is taxed accordingly. The figure here is before tax.