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Commission Calculator

Sales commission and total earnings

Commission Calculator

A sales commission is a percentage of sales revenue paid to a salesperson as compensation for generating business. Commission structures vary widely — flat rate, tiered (higher rate at higher volumes), split (between multiple reps), or residual (recurring on ongoing contracts).

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Tip: Understand your commission structure before joining a sales role. A 6% commission with high quotas can earn less than a 3% commission with achievable targets. Always model realistic scenarios.

  1. 1Commission = Sales × Commission rate
  2. 2Total earnings = Base salary + Commission
  3. 3OTE (On-Target Earnings) = Base + expected commission at quota
  4. 4Commission rate typically ranges from 2–10% for most industries
$80,000 in sales, 5% commission, $2,000 base=$6,000 commission, $8,000 total$80,000 × 0.05 = $4,000 + $2,000 base
Tiered: 3% on first $50k, 6% above=$4,500 on $75k sales$1,500 + $3,000 from different tiers
IndustryCommission RangeNotes
Real estate2.5–3%Of sale price, split with broker
Insurance5–20%Higher for life insurance
Software/SaaS8–12%Of Annual Recurring Revenue
Retail1–3%Plus bonuses on targets
Pharmaceuticals2–8%Territory-based
Financial services0.5–5%AUM or transaction-based
Recruitment15–25%Of placed candidate salary

Fun Fact

The term "commission" comes from Latin "commissio" (to entrust). Medieval merchants used commission agents to sell goods in distant markets — a practice that drove global trade before modern corporations.

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