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Commission Calculator
Flat rate or tiered schedule — what does your commission actually come to? This commission calculator handles both, adds a base salary for total pay, and breaks a graduated schedule down tier by tier: commission, effective rate and total compensation at a glance.
See how this works on a $200,000 sales month — 3 real examples
Total pay (base + commission)
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Commission earned
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Effective rate
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Base pay
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Per-tier commission breakdownHow each slice of sales is paid
| Tier range | Amount in tier | Rate | Commission |
|---|
How your commission and total pay are calculated
A flat commission is a single rate on the whole sale; a graduated schedule pays each rate only on the sales inside its tier:
Flat: commission = basec × rate / 100
Tiered: commission = Σ (slicet × ratet / 100)
Total pay = base salary + (commission × split / 100)
The commission base basec is your total sales on a revenue plan, or the gross profit you enter on a profit plan. In tiered mode each tier’s rate applies only to the slice of the base between the previous tier’s cap and its own — so at 3% up to $50,000 and 5% above, the first $50,000 always earns 3% no matter how large the deal, and only the excess earns 5%. Leaving the top tier’s “Up to” blank makes it open-ended. The effective rate is your total commission divided by total sales, so it reads as a percent of revenue even on a profit-basis plan. For a graduated schedule that covers the whole base it lands between your tier rates; if the top tier has a finite cap and sales run past it, the uncommissioned excess pulls the effective rate lower. A base salary is added on top, and an optional split takes your share of the commission before adding the base. This tool is for planning and education, not pay, tax or legal advice.
One $200,000 month, three pay plans
Three pay plans applied to the same $200,000 of sales. Two of them arrive at the same $10,000 — by very different routes.
All commission: a flat 5%
total pay$10,000
- One rate covers the whole deal: 5% of $200,000 comes to $10,000, and the arithmetic ends there.
- A slower month at $100,000 in sales would pay $5,000 — the paycheck moves dollar-for-dollar with revenue.
- The effective rate reads exactly 5.00%, since every dollar of sales earns the same.
The highest ceiling of the three, and the lowest floor — nothing is guaranteed.
Load this example (opens in a new tab)Graduated: 3% to $50,000, then 5%
total pay$9,000
- The first $50,000 pays 3%, or $1,500, no matter how large the month gets.
- The other $150,000 falls in the 5% tier and adds $7,500.
- Blended, the effective rate is 4.50% — $1,000 behind the flat plan on identical sales.
Each rate touches only its own slice, so the top rate never applies to the whole $200,000.
Load this example (opens in a new tab)Salaried: $5,000 base plus 2.5%
total pay$10,000
- Half the money is guaranteed: $5,000 of base arrives whether anything sells or not.
- The 2.5% rate on $200,000 adds the other $5,000 as commission.
- A zero-sales month here still pays $5,000; the flat plan would pay nothing.
The same $10,000 as the flat plan this month — only the risk is distributed differently.
Load this example (opens in a new tab)Illustrations only, not financial advice. Your own rate, taxes and insurance will differ — check with a qualified financial advisor before acting on any of this.
Reading your commission, in plain English
- Flat is one rate on everything. To calculate commission on a single sale, multiply the amount by the rate — a $200,000 sale at 5% pays $10,000. That is the whole of the flat mode.
- Tiered rewards bigger producers. A graduated plan only pays the higher rate on sales above each cap, so your effective rate climbs toward the top tier without ever jumping the whole deal to it.
- Total pay tells the real story. Base salary plus commission is your actual compensation — the composition bar shows how much is guaranteed versus variable.
- Basis changes the incentive. Commission on revenue rewards volume; commission on profit protects margins by paying less on discounted, low-profit deals.
- Splits divide the commission, not the base. Set your split below 100% for co-listings or team deals — you keep your percentage of the commission, then add your own base.
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Frequently asked questions
How do I calculate commission from a sale price and rate?
Multiply the sale amount by the commission rate as a decimal: commission = sales × rate ÷ 100. A $200,000 sale at a 5% rate earns $10,000 (200,000 × 0.05). This flat calculation is the default mode here — type the sale amount and the rate, and the commission, effective rate and total pay update instantly.
How does a tiered (graduated) commission structure work?
In a graduated schedule each rate applies only to the slice of sales inside that tier, not to the whole amount. With 3% up to $50,000 and 5% above, $80,000 in sales earns 3% on the first $50,000 ($1,500) plus 5% on the next $30,000 ($1,500), for $3,000 total. Switch to Tiered mode and the per-tier breakdown table shows exactly how each slice is paid, plus the blended effective rate.
How do I calculate total pay when I have a base salary plus commission?
Add your fixed base pay for the period to the commission you earned: total pay = base + commission. This base-salary-plus-commission calculator shows the split visually in the composition bar and reports total compensation as the headline number, so you can see how much of your pay is guaranteed versus variable.
What is the difference between commission on revenue and commission on profit?
Revenue-basis commission is a percent of the full sale amount; profit-basis commission is a percent of the gross profit (sale minus cost). Profit-basis plans protect margins because a discounted or low-margin deal pays less. Flip the "Commission on" toggle to Profit and enter the profit figure — the rate then applies to profit while the effective rate is still shown relative to your sales.
How do I work out a 1% or 2% commission quickly?
Move the decimal: 1% of a sale is the sale amount divided by 100, and 2% is that doubled. On a $250,000 sale, 1% is $2,500 and 2% is $5,000. Set the flat rate slider to 1 or 2 to check any amount, or use this commission percentage calculator to compare a few rates side by side.
How is a split commission divided between two agents?
A split assigns each agent a percentage of the total commission. If a $12,000 commission is split 60/40, one agent keeps $7,200 and the other $4,800. Set "Your split" below 100% to see your share and your base-plus-share total pay; the full commission is still shown so both sides of a co-op or team split reconcile.
Is this a real estate or car sales commission calculator too?
Yes — the math is identical whether you sell homes, cars, insurance or software. Enter the transaction total as the sale amount and your rate (real estate is often 2.5–3% per side; auto and retail plans are frequently tiered on volume). Use tiered mode for graduated plans and the split field for co-listing or team arrangements.
Disclaimer: these calculators are educational tools, not financial advice. They model your inputs with published formulas, but they cannot know your full situation — for decisions with real stakes, talk to a qualified professional. Formulas and defaults last reviewed .