Commission Calculator
Calculate sales commissions, total earnings, and effective commission rates. Whether you're a sales professional tracking your earnings, a business owner setting up compensation plans, or a freelancer quoting project fees, this calculator helps you understand your commission-based income.
Commission Details
Understanding Sales Commissions
Commission-based compensation aligns salesperson incentives with company goals. When structured correctly, it motivates sales teams to close more deals while rewarding top performers. Whether you're earning commissions or designing a compensation plan, understanding the math behind commissions is essential.
Common Commission Structures
- Straight Commission: 100% commission-based, no base salary
- Base + Commission: Fixed salary plus percentage of sales
- Tiered Commission: Higher rates for exceeding targets
- Residual Commission: Ongoing payments for recurring revenue
- Draw Against Commission: Advance payments reconciled monthly
Industry Benchmarks
Commission rates vary widely by industry. Real estate typically ranges 2-6%, SaaS sales 10-20%, insurance 5-15%, and retail 1-10%. When evaluating offers or setting rates, consider the sales cycle length, deal size, and whether leads are provided or self-generated.