A walkthrough, end to end.
- 1
Enter the sale amount and your commission rate.
- 2
Optionally add a tiered structure: a different (typically higher) rate above a threshold.
- 3
The calculator returns commission earned, net to seller, and effective rate.
Commission math
Flat: commission = sale × rate. Tiered: commission = (threshold × base rate) + ((sale − threshold) × accelerator rate). Common in B2B sales where above-quota performance is rewarded with a higher rate.
What you can do with this.
Real estate commission
Standard US real estate commission is 5–6% of sale price, typically split between buyer and seller agents (so each gets 2.5–3%). On a $500K home: $25–30K total commission, ~$12.5–15K per agent before broker split.
B2B sales commission
Typical SaaS sales: 10% commission below quota, 15–20% accelerator above quota. Use the calculator to estimate quarterly OTE (on-target earnings) for sales reps.
Insurance commission
First-year life insurance commission can be 50–100% of annual premium; renewals 5–10%. Calculate first-year vs. renewal income separately to set realistic income expectations.
Investment broker commission
Mutual fund A-shares charge 4–5% upfront load. On a $50K investment, that's $2,000–2,500 to the broker. Index funds and ETFs are commission-free at most brokerages.
Affiliate commission
Common ranges: physical products 2–10%, digital products 30–50%, software 20–40%, finance/credit cards 1–4% but on larger amounts. Match expectation to the category.
Negotiating real estate commission
Commission is negotiable, especially in higher-priced markets and seller's markets. Discount brokers (1–2%) and flat-fee MLS listings ($300–1,500) are alternatives. Math out the savings before signing standard 6%.
Accelerator structures
Sales reps often have flat rate to quota, accelerator above. A 10%/20% structure with $200K quota: $20K on first $200K, then 20% on additional sales — strong incentive to push past quota.
Commission calculator 2026 — what's current
March 2024 NAR settlement changed US real estate commissions — buyer agent commission is now negotiated separately and disclosed upfront. Use the calculator for whichever side's commission you're computing.
Frequently asked.
Highly industry-dependent. SaaS: 8–12% of ARR. Real estate: 5–6% of price. Insurance first-year: 50–100% of premium. Look up benchmarks for your specific industry.
Usually before — commission is on revenue, not profit. Some companies use 'gross profit' commission (revenue − COGS) for higher-margin alignment with reps.
In the US, commission is ordinary income and subject to federal + state income tax + FICA. Withholding rates may differ from your salary withholding — talk to a tax pro if commissions are a large share of pay.
No. Calculations run entirely in your browser.