How do I calculate tiered commission?

Split the sale across the tiers, calculate each portion at its own rate, and add the amounts. For example, the first 10,000 at 5% and anything above at 8%.

Is commission calculated before or after tax?

Usually on the net sale value excluding sales tax, because the tax is collected on behalf of the authority rather than earned. Check the specific agreement.

What if the customer later receives a refund?

Most commission agreements claw back commission on refunded or cancelled sales. Recalculate using the net amount that was actually retained.

Can the commission rate be above 100%?

Not as a percentage of the same sale. This calculator limits the rate to 100%, which is the point at which nothing remains.

Commission Calculator

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What this calculator does

Commission links pay to sales, whether you are calculating what a salesperson earned or what a platform will deduct from your own sale.

This calculator shows the commission amount and what remains, which is the figure that actually reaches the seller or the business.

How the calculation works

The commission rate is applied to the sales amount to produce the commission. Subtracting it from the sale gives the amount remaining.

Because commission is a percentage, the same rate produces very different amounts at different sale sizes, which is why the remaining amount matters as much as the commission.

Worked example: 7.5% commission on a 4,000 sale

1Sales amount: 4,000.00
2Commission: 4,000.00 × 7.5% = 300.00
3Remaining: 4,000.00 − 300.00 = 3,700.00

The commission is 300.00 and 3,700.00 remains from the sale.

Common mistakes

Calculating commission on the amount including tax rather than the net sale value.
Applying a single rate when the agreement has tiers that change at a threshold.
Forgetting that refunds and chargebacks usually reverse the commission too.
Treating gross commission as take-home pay without allowing for tax and expenses.