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Sales Commission Calculator
Closing deals is hard work. Calculating your payout shouldn't be. Use this tool to instantly see your commission and total earnings.
Know Your Worth: Commission Structures Explained
Sales roles offer unlimited earning potential, but the math can get tricky. Whether you're on a straight commission plan or a base-plus-commission model, knowing your numbers is key to hitting your financial goals.
Expert Tip from David Chen, CFA
"Always clarify if your commission is based on *revenue* or *profit*. A 10% commission on gross revenue is very different from a 10% commission on net profit. If you're negotiating a new job offer, push for revenue-based commission—it's much easier to track and harder for the company to manipulate with 'overhead' costs."
Common Commission Models
- Straight Commission: You earn a percentage of everything you sell. High risk, high reward. (e.g., Real Estate Agents).
- Base + Commission: You get a steady paycheck plus a bonus for sales. Lower risk, but often lower commission rates. (e.g., Software Sales).
- Tiered Commission: The more you sell, the higher your rate goes. (e.g., 5% on the first $10k, 10% on everything after).
Common Mistake: Ignoring Taxes
Remember that commission checks are often taxed differently (or withheld at a higher rate) than regular salary in many jurisdictions. Don't spend that $5,000 bonus before Uncle Sam takes his cut. A safe rule of thumb is to set aside 30-40% for taxes.