Commission Calculator

Getting paid off of commission is increasingly common today, as well as being present in other forms. Use this tool to quickly calculate the commission amount based on rate and total dollar amount.

Required Information

Price ($):

Commission Percent:

Commission:

What it is

What is Commission?

Create Date: September 12, 2024

Last Modified Date: December 2, 2024

Commission is a way of earning money. Most commonly, members of sales teams in companies are often paid in commission. The way it works is you are given a percent commission that you will make, then when you make a sale your pay is that percentage of the total sale or profit of that sale, depending on your employer's agreement. This exists in many different industries. Some include real estate, when a house is sold the real estate agent makes commission on that sale, car sales, when you buy a car they get a percent, and many more.

How do you Calculate Commission?

Calculating commission can be done simply with the two following variables:

Sale price

Commission percentage

Once you have these two variables you can use them in the following formula to find out the exact commission amount to be paid:

An image showing the formula for calculating the amount someone should earn in commission pay.

Where:

C = Commission

P = Price

CP = Commission percent

Understanding Your Results

The result will be a dollar amount. This amount of money is the amount to be paid out in commission according to your specified values. This value does not include any taxes or fees that are taken out before being distributed, this number is the raw commission amount to be paid based on the situation provided.

How to Use the Commission Tool

Calculate commission here with Totu, it is easy and efficient. To do so, follow these steps:

Enter the total price of the deal or sale.

Enter the commission percentage to be paid.

Hit calculate and get the commission pay amount instantly!

Example Calculation

Let's say we are interested in becoming a real estate agent. We have an offer to join a company where we would make 2% of the total house sale amount in commission. We can use this tool to project just how much that may be.

Let's assess a house that is valued at $295,000. To get our answer we will enter 295,000 into the price field and then 2 into the commission percent field. We can now hit calculate and get a commission pay of $5,900 in this situation.

Commission - Frequently Asked Questions

Commission is paid out depending on your employer. Commonly, it is paid out on a monthly basis.

Commission is not necessarily better than salary, but it often will allow those who are driven to work harder and make more since there is no earning cap, typically. The largest downside can be that your pay will be very little if you are not making many sales, making it harder to make ends meet.

The IRS treats commission as supplemental income, making it not regular income. They typically tax higher on other forms of income like this.

For the USA, commission must be taxed.

Similar Tools

Related Calculators

We have many more calculators that you can use for free. Here are a few similar tools that might interest you.