Commission Calculator

Work out sales commission at a flat rate or on a tiered plan, add base pay, and see your total earnings and effective commission rate.

Free to use. No sign-up. Your figures stay in your browser.

Sales and plan

Your result

Enter your figures and select Calculate. Your result appears here.

How to use this calculator

Enter your sales for the period.
Choose a flat rate, or tiered rates if your rate changes as sales grow.
For tiers, enter each rate and where it stops, and choose how your plan applies them.
Optionally add base pay for the same period, then select Calculate.

How it works

Flat rate

Commission = sales × rate ÷ 100

Tiered: graduated

Each rate applies only to the slice of sales inside its tier, like tax brackets. With 4% up to $50,000 and 6% above, $80,000 of sales earns $50,000 × 4% + $30,000 × 6% = $3,800.

Tiered: retroactive

Once sales reach a tier, that tier's rate applies to all sales. With the same plan, $80,000 of sales earns $80,000 × 6% = $4,800.

Total pay = base pay + commission

Effective rate = commission ÷ sales × 100

Worked example

Alex sells $120,000 in a quarter on a graduated plan: 4% up to $50,000, 6% up to $100,000, and 8% above that. Base pay for the quarter is $9,000.

Step	Result
Tier 1: $50,000 × 4%	$2,000.00
Tier 2: $50,000 × 6%	$3,000.00
Tier 3: $20,000 × 8%	$1,600.00
Commission	$6,600.00
Total pay: $9,000 + $6,600	$15,600.00
Effective rate: $6,600 ÷ $120,000	5.5%

Frequently asked questions

How do I calculate commission?

Multiply the sales amount by the commission rate. 5% commission on $40,000 of sales is $40,000 × 0.05 = $2,000.

What's the difference between graduated and retroactive tiers?

On a graduated plan, each rate applies only to sales within its tier. On a retroactive plan, reaching a higher tier raises the rate on all your sales. Retroactive plans pay more once a threshold is crossed. Your written commission plan says which one applies.

How is commission taxed?

Commissions are supplemental wages under IRS rules, like bonuses. If they're paid separately or identified separately from regular wages, employers may withhold federal income tax at a flat 22%. Our Bonus Calculator estimates federal withholding on a supplemental payment.

Do commissions count toward overtime?

For nonexempt employees, the regular rate used to work out overtime generally includes all pay for employment, except certain payments the law excludes. Commissions usually count. The Department of Labor's Fact Sheet #23 explains the regular rate.

What is an effective commission rate?

Your total commission divided by total sales. On a tiered plan it shows the average rate you actually earned across all your sales.

Sources

The commission calculation is arithmetic only. The official pages below cover the tax and overtime points in the FAQ.

IRS Publication 15 (2026), Employer's Tax Guide, section 7: Supplemental Wages. Bonuses and commissions are supplemental wages. The optional flat withholding rate is 22%, and 37% applies to supplemental wages over $1 million in a calendar year.
U.S. Department of Labor: Fact Sheet #23, overtime pay requirements. Explains that the regular rate used for overtime includes all pay for employment, except certain payments the law excludes.

Last reviewed: October 2, 2026. This tool is not an official government calculator, and it is not tax, legal or financial advice. See the resources disclaimer.

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