How to work out a commission
- Enter the Sale amount and the Commission rate.
- If the commission is split (with a broker, a team or a co-agent), enter Your share of it. Add any Base pay for the same period to see your total.
- Read the commission and the breakdown. To find a rate instead, choose Commission rate and enter what you were paid.
Common commission structures
- Straight commission: you earn only a percentage of what you sell. Enter the rate and leave base pay at 0.
- Base plus commission: a fixed salary plus a smaller percentage. Enter the base pay for the same period as the sales (a month, for example) to see your total pay.
- Split commission: a commission shared between people, such as a real estate agent and their broker. Enter your percentage of the total in Your share.
- Tiered commission: a higher rate on sales above a target. Work out each tier separately: for 5% on the first 20,000 and 8% above it, a 30,000 month pays 1,000 + 800 = 1,800.
Commission and gross profit
Some companies pay commission on the profit from a sale rather than the price. If yours does, enter the gross profit as the sale amount. To check the profit on an item, use the markup calculator.