Pay on performance, exactly

Commission Calculator

Work a flat rate on sales, split it between agent and broker, or step the rate up past a threshold — with the effective rate beside the payout so the plan can be checked at a glance. Free, no signup, and nothing leaves your browser.

Calculated in this browser. Nothing is uploaded or stored.

Earn it
Sales
$250,000.00
Effective rate
5%
Commission
$12,500.00

Commission = $250,000.00 × 5%.

The three shapes of commission

A flat rate pays one percentage on the whole figure: 5% on $250,000 of sales is $12,500. A split divides that payout — a 70/30 agent/broker split of a $15,000 commission sends $10,500 to the agent and $4,500 to the broker. A tiered plan pays a different rate on each slice: 5% on the first $100,000 and 7% above it turns $200,000 of sales into $12,000, an effective rate of 6%.

The tier mistake is applying the top rate to the whole figure. Tiers are marginal: each rate touches only the sales inside its band, the way income tax brackets do. The effective rate under the payout is the check — if it equals the top tier rate, the tiers were applied wrong.

What this is not

This calculates the three standard plan shapes from the figures you give it. It does not model draws, caps, clawbacks, team pools or quota accelerators — those are employer-specific, and a plan that has them needs its own arithmetic. Figures are before tax, and this is not tax, payroll or legal advice.