How commission works
Commission is pay calculated as a percentage of the sales you make. A straight commission is just the sale amount times the rate. Many roles combine a fixed base salary with commission on top, so your total pay rises with your sales while never dropping below the base.
Frequently asked questions
What's the effective rate?
When you add a base salary, the effective rate is your total pay as a percentage of the sale — useful for comparing pay structures.
Does this handle tiered commission?
This calculator uses a single flat rate. Tiered structures (different rates at different sales levels) are best built in a spreadsheet — see the Excel section above.
Is commission taxed?
In most places commission is treated as income and taxed like salary. This tool shows gross commission before any tax.