LeeChuanjing Pay

Commission Calculator

Calculate commission pay from sales and rate, with or without a base salary. See weekly, monthly and annual totals instantly.

No sign-upInstant resultsMobile friendlyPrivate & local

Enter your sales for a month, quarter or year — the label follows your input.

Work out exactly what your sales are worth

Commission pay sounds simple — a percentage of what you sell — but offers come in flavors that make comparison genuinely hard: straight commission, base plus commission, tiered rates that rise after a quota, and draws that behave like an advance on future commission. This calculator handles the core case: sales × rate, optionally stacked on a base salary, so you can price a role or check a paycheck.

The formula

Commission = Sales × Commission rate
Total gross pay = Base salary + Commission

Enter sales for whichever period you are modeling — a month for a monthly quota, a year for annual planning — and the output follows the same period. The monthly average line assumes a 12-month year, which is the right lens for budgeting.

Worked example

A sales rep with a $30,000 base and an 8% commission rate closes $500,000 in annual sales. Commission is 500,000 × 0.08 = $40,000. Total gross pay is $30,000 + $40,000 = $70,000, or about $5,833/month. If the plan adds a second tier — 10% on everything above $600,000 — the same rep at $700,000 earns 8% × 600,000 + 10% × 100,000 = $58,000 in commission. Tiered plans reward the last dollars more, which is exactly why they motivate.

Reference: commission at common rates

Sales5%8%10%15%
$100,000$5,000$8,000$10,000$15,000
$250,000$12,500$20,000$25,000$37,500
$500,000$25,000$40,000$50,000$75,000
$1,000,000$50,000$80,000$100,000$150,000

When you need this number

  • Evaluating an offer: ask for the realistic sales range the current team hits, not the record — then run it through the calculator.
  • Checking a paycheck: commission periods often lag by a month; this helps you reconcile what should have landed.
  • Negotiating the rate: sometimes a 1-point rate increase is worth more than a $5,000 base bump — run both scenarios.
  • Freelance agents: realtors, recruiters and insurance agents can model their pipeline's value the same way.
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Frequently asked questions

Is commission pay taxed differently?
Commission is ordinary taxable income. Employers often withhold federal tax from bonuses and commissions at a flat 22% supplemental rate, but your actual tax bill is settled at filing — over- or under-withholding evens out on your return.
What is a "draw" against commission?
A draw is an advance you receive regularly that is later subtracted from earned commission. A recoverable draw must be paid back if commission falls short; a non-recoverable draw acts like guaranteed base pay. The distinction changes the risk of an offer dramatically.
How do tiered commission plans work?
The rate increases once sales pass a threshold — either on all sales (retroactive) or only on sales above the line (marginal). Always ask which; the same tiers produce very different totals.
Should I compare a commission role to a salary role?
Convert both to expected annual total, then weigh the variance: commission income swings with sales, so compare not just the average but the bad month. Our Hourly to Salary and Salary to Hourly calculators help with the base-pay side.
Does the calculator handle spiffs and bonuses?
Add any known amounts to the base salary field for the same period, or run them as separate scenarios. Variable spiffs are best modeled as a separate line in a spreadsheet.

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