Commission Calculator
Enter the sale amount and commission rate to calculate commission earned and the net amount after commission is paid. Works for sales reps, agents, recruiters, real estate professionals and any commission-based role.
Enter the sale amount and commission rate to calculate commission earned and the net amount retained after commission. Used by sales teams, agents, freelancers and recruiters.
Total value of the sale or contract
Percentage agreed in the commission structure
Formula
Commission Amount = Sale Amount × (Commission Rate ÷ 100) | Net Amount = Sale Amount − Commission Amount
A commission is a percentage of the sale value paid to the agent, salesperson, or intermediary as compensation for facilitating or closing the deal. The net amount is what remains after deducting the commission from the full sale value.
Worked Example
Sales rep closes a $10,000 B2B software contract on a 10% commission structure:
Commission = $10,000 × 10% = $1,000
Net to business = $10,000 − $1,000 = $9,000
If the rep also earns a 2% bonus tier on deals above $8,000, the additional bonus would be $10,000 × 2% = $200, making total commission $1,200 and net $8,800. Model each tier separately using this calculator.
FAQ
Frequently Asked Questions
Use this in your workflow
After calculating the commission, use the Margin Calculator to check whether the net amount still delivers your required gross margin. Use the Discount Calculator to model how a promotional discount on the sale price affects commission and net proceeds. Browse all Free Business Calculators.
Worked examples: commission in practice
Three common commission scenarios to use as a reference.
| Scenario | Sale Amount | Rate | Commission |
|---|---|---|---|
| B2B SaaS sales rep (quarterly deal) | £24,000 | 10% | £2,400 |
| Recruitment agency fee (£60k salary) | £60,000 | 20% | £12,000 |
| Real estate agent (£350k property) | £350,000 | 1.5% | £5,250 |
In each case, the seller or agent retains the commission and the net proceeds go to the seller (or the hiring business pays the fee to the agency separately). For tiered structures, calculate each band separately and sum the results.
Limitations
This calculator computes simple percentage-based commission on a single sale amount. It does not model tiered structures, draw against commission, clawbacks, split commission between multiple agents, or VAT on agent fees. Commission agreements vary widely — always check whether commission is calculated on the gross sale (before tax and discounts) or the net sale. These results are for planning and estimation purposes only — not financial, legal, or accounting advice.
When to use this calculator
- →Calculating a sales rep's commission on a closed deal before processing payroll
- →Working out an agent or broker fee on a property transaction, recruitment placement, or affiliate sale
- →Verifying the net proceeds after commission before raising an invoice or purchase order
- →Modeling different commission rate scenarios when designing a sales compensation plan
Frequently asked questions
How is commission calculated?
Commission is calculated as a percentage of the sale value. Multiply the sale amount by the commission rate and divide by 100. A 10% commission on a £10,000 sale = £1,000. The seller retains £9,000 after paying the commission.
What is a typical commission rate?
Commission rates vary widely. Real estate agents typically earn 1–3%. B2B software sales roles often receive 8–12%. Recruiters charge 15–25% of first-year salary. Insurance agents earn 5–20%. Retail sales may earn 1–5%.
What is the difference between commission and markup?
Commission is a percentage of the sale value paid to the agent as compensation — it reduces the net proceeds. Markup is added to a cost price to arrive at the selling price. A 10% commission on a £100 sale yields £10 commission and £90 net. A 10% markup on £100 cost gives a £110 selling price.
Is commission calculated on net or gross sale amount?
Most commission structures pay on the gross sale amount before VAT or tax. Some agreements pay on the net amount after discounts or returns. Always clarify the commission basis in the agreement. This calculator uses the gross sale amount you enter.
How do tiered commission structures work?
Tiered commissions pay different rates at different performance levels. Calculate each tier separately and add the results. For example: £50,000 × 8% = £4,000, plus (£70,000 − £50,000) × 12% = £2,400, giving total commission of £6,400 on £70,000 in sales.
Can I use this calculator for recruiter fees?
Yes. Enter the annual salary as the sale amount and the agency fee percentage as the commission rate. A £60,000 salary placement at 20% = £12,000 agency fee. The hiring company pays the salary to the candidate and the fee to the agency separately.