Commission Calculator
Adjust the inputs below. Results update as you type.
How it works
Simple commission = sale amount × rate. Tiered structures apply different rates to different revenue bands—enter each tier separately and sum. Gross commission income (GCI) for real estate agents is typically 2.5–3% of sale price, split with the brokerage. Self-employed agents pay self-employment tax (15.3%) on net commission income.
Input guidance
- Use realistic rates from lender or provider quotes instead of headline averages.
- Model conservative, baseline, and optimistic scenarios before deciding.
- Include recurring real-world costs (fees, taxes, insurance, maintenance) where relevant.
The formula
Commission = sale amount × commission rate. Tiered plans apply different rates to different sales bands; total pay = base salary + commission earned.
Worked example
A 5% commission on $40,000 of sales is $2,000. With a $3,000 base, total pay for the period is $5,000.
More examples to test
- Conservative case: use a higher interest rate and lower growth assumptions to stress-test affordability.
- Optimistic case: use a lower rate with stable income assumptions to compare upside potential.
How to interpret results
Treat this as a planning model, not a final approval tool. Compare at least two scenarios and focus on total-cost and cash-flow trade-offs.
When this can be inaccurate
Results can diverge due to fees, changing rates, tax rules, lender policies, and behavior changes that simplified models cannot fully capture.
Change history
- July 2026: Quality-reviewed for publication with formula checks and explanatory copy updates.
Site-wide corrections also appear on the corrections log.
Compare top personal finance offers
Offers and rates vary by eligibility.
Frequently asked questions
What is a tiered commission?+
A structure where higher sales unlock higher rates — for example 4% up to a target and 6% above it — to reward top performance.
What is a draw against commission?+
An advance the employer pays that is later deducted from earned commission, smoothing income in commission-only roles.
Is commission taxed differently?+
It is taxable income like wages, though employers may withhold it at a higher supplemental rate, which can balance out at tax time.
How should I use this result?+
Treat it as a planning estimate. Compare at least two realistic scenarios, then confirm with statements, quotes, or a qualified professional before acting.
How often should I refresh assumptions?+
Refresh whenever rates, income, costs, or policy limits change materially, and before making irreversible commitments.