What Is a Commission Calculator?
A commission calculator helps you quickly compute percentage-based remuneration. Whether you are a salesperson, employer, or buyer, this tool works in all directions: enter any two known values and the third is calculated for you automatically.
How to Calculate Commission
Commission is a very basic calculation revolving around percentages. Simply take the sale price, multiply it by the commission percentage, and divide by 100.
Formula: Commission Amount = Sale Price × Commission Rate / 100
Example: A blue widget is sold for $70. The salesperson earns 14% commission: $70 × 14 / 100 = $9.80
Who Pays the Commission?
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Seller covers the commission (most common):
Real Revenue = Sale Price − Commission Amount
Example: $70 − $9.80 = $60.20 -
Buyer covers the commission (less common):
Price with Commission = Sale Price + Commission Amount
Example: $70 + $9.80 = $79.80
Three Calculation Modes
- Sale Price + Rate → Commission Amount — the most common scenario
- Commission Amount + Rate → Sale Price — find the sale price that generated a given commission
- Sale Price + Commission Amount → Rate — find out what percentage was charged
Typical Commission Rates
- Manufactured goods: 7% – 15% of the sale value
- Services: 20% – 50% (lower overheads, higher margins)
- Real estate: 3% – 6% of the property price
- Insurance: 5% – 20% of the premium
- Software / SaaS: 8% – 15% of annual contract value
How to Calculate a 1% Commission
- Divide the sale price by 100, OR
- Move the decimal point of the sale price two places to the left.
Either value is your 1% commission. For a 2% commission, simply double the result.
Supported Currencies
This calculator supports 30+ world currencies across all major regions: Americas (USD, CAD, BRL, MXN…), Europe (EUR, GBP, CHF, RUB…), Asia & Pacific (JPY, CNY, INR, KRW…), and Middle East & Africa (AED, SAR, ZAR…). Simply select your currency from the dropdown and all amounts will display the correct symbol.
FAQs
What is a typical commission?
It depends on what is being sold. For manufactured goods, the commission rate tends to be around 7–15%. Services tend to be 20–50% due to generally lower overheads. The average reported income in the USA for commission-based jobs is approximately $66,805.
How do I work out commission?
Take the sale price, divide by 100, then multiply by the commission percentage. The result is your commission amount.
Is commission the same as profit margin?
No. Commission is a fee paid to a salesperson or agent, calculated as a percentage of the sale price. Profit margin measures the profitability of the business after all costs. Use our Margin Calculator for margin calculations.