Commission Calculator

This professional commission calculator helps sales reps, managers, and real‑estate professionals compute payouts quickly and accurately. Model simple percentage, flat+percent, or tiered commissions; apply caps; and split amounts between parties — all with accessible, mobile‑first UX.

Results

Commission base $0.00
Calculated commission $0.00
Applied cap $0.00
Commission (after cap) $0.00
Effective rate 0.00%
Net after commission $0.00

Enter values to see detailed results. No data is stored.

Data Source and Methodology

Authoritative Data Source: U.S. Department of Labor — 29 CFR § 778.117 “Commission payments—general” (2024-07-01). Direct link. All calculations are strictly based on standard percentage and piecewise (tiered) functions consistent with these definitions. Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.

For industry-specific norms (e.g., real estate), consult your brokerage agreement or local association guidelines.

The Formula Explained

Base: The commission base subtracts discounts from sale amount:

\\( B = \max(0,\; S - D) \\)

Percentage model:

\\( C = B \times \frac{r}{100} \\)

Flat + percentage:

\\( C = F + B \times \frac{r}{100} \\)

Tiered (three brackets):

\\[ C = \begin{cases} B \cdot \frac{r_1}{100}, & B \le T_1 \\\\ T_1 \cdot \frac{r_1}{100} + (B - T_1) \cdot \frac{r_2}{100}, & T_1 < B \le T_2 \\\\ T_1 \cdot \frac{r_1}{100} + (T_2 - T_1) \cdot \frac{r_2}{100} + (B - T_2) \cdot \frac{r_3}{100}, & B > T_2 \end{cases} \\]

Cap and split:

\\( C_{cap} = \min(C,\; \text{Cap}) \\)

\\( C_{agent} = C_{cap} \times \frac{a}{100}, \quad C_{partner} = C_{cap} - C_{agent} \\)

Effective rate: \\( r_{eff} = \begin{cases} \frac{C_{cap}}{B}\times 100\%, & B>0 \\\\ 0, & B=0 \end{cases} \\)

Glossary of Variables

How It Works: A Step‑by‑Step Example

Scenario: S = $150,000; D = $0; Tiered with T1 = $100,000 at r1 = 4%; T2 = $150,000 at r2 = 2%; r3 = 1% above T2; Cap = $6,000; split a = 60%.

  1. Base: B = max(0, 150,000 − 0) = 150,000.
  2. Commission before cap: C = 100,000×0.04 + (150,000−100,000)×0.02 = 4,000 + 1,000 = 5,000.
  3. Cap: Ccap = min(5,000, 6,000) = 5,000.
  4. Split: Cagent = 5,000×0.60 = 3,000; Cpartner = 2,000.
  5. Effective rate: reff = 5,000 / 150,000 = 3.33%.

Frequently Asked Questions (FAQ)

Can I model brokerage splits or co‑op splits?

Yes. Use the Split option to allocate a percentage to the agent; the remainder goes to the partner/broker/coparticipant.

What happens if discounts exceed the sale amount?

The commission base is floored at zero, so no negative bases are allowed.

How do I represent a minimum guarantee?

Enter the minimum as a Cap only if it’s a maximum. For a minimum payout, add it to a flat fee in the Flat + % model or include it in your plan outside of this calculation.

How do I add transaction fees?

If fees reduce the commission base, include them in Discounts. If they are in addition to commission, add them manually to your final payout outside the tool.

Is tier order important?

Yes. Threshold 1 should be lower than Threshold 2. The calculator validates the order and shows how much of the base falls in each bracket.

Do you store my inputs?

No. All calculations run in your browser. Nothing is sent to a server.

Will this calculator match my contract exactly?

It models common structures, but contracts vary. Always defer to your signed compensation plan for the authoritative payout rules.

Tool developed by Ugo Candido. Content verified by Finance Editorial Board.
Last reviewed for accuracy on: September 13, 2025.