Work out commission on a sale at a flat rate, or use up to three tiers where the rate goes up as sales grow. You can also add a base salary, or work backwards to the sales you need.
Each rate applies only to the part of sales inside its band, like tax brackets.
Flat commission is sales × rate: 25,000 at 5% is 1,250. Add any base pay for total earnings. For an estate agent or marketplace fee, the "seller keeps" figure shows the sale price minus that commission.
Tiered (graduated) plans pay a higher rate on sales above each threshold, but only on the portion inside each band. With 4% up to 10,000, 6% from 10,000 to 50,000 and 8% above, sales of 60,000 earn 400 + 2,400 + 800 = 3,600, an effective rate of 6%.
Working backwards, rate = commission ÷ sales, and sales needed = target ÷ rate. On tiered plans, the calculator finds the sales level at which the bands add up to your target.
Multiply the sale amount by the commission rate as a decimal. 5% of 8,000 is 8,000 × 0.05 = 400.
A plan where the rate rises once sales pass set thresholds. In a marginal plan (used here), each rate applies only to sales inside its band. Some plans instead pay the higher rate on all sales once you reach a tier; check which your employer uses.
Divide the commission by the sales it was paid on and multiply by 100. 1,500 on 30,000 of sales is a 5% rate.
Divide the commission you want by your rate. To earn 2,000 at 4% you need 50,000 of sales.
In most countries commission is taxed as ordinary income, though withholding at payment time can differ from regular salary. These figures are before tax.
