What next?
Commission is a cost of sale, so it lands in the margin.
What your result means
Commission per sale is the rate applied to a single deal. Effective rate on earnings shows how much of your total pay is variable rather than guaranteed — a high figure means strong upside in good months and real exposure in quiet ones. Seller keeps per sale is the view from the other side: what the business retains after paying out.
Why this one is different
Plans that reward volume rather than value are handled without a workaround: the per-deal option takes a fixed sum, so a recruiter paid £500 a placement does not have to reverse-engineer a percentage first. A "seller keeps per sale" row then answers the question a target-chasing month actually raises — what one more closed deal is worth to you.
How it works
Commission is a straight percentage of the sale value. Total earnings add the base pay for the period to the commission on every deal closed. The effective rate divides variable pay by total pay, which is the standard way to describe a compensation split.
How to use this calculator
- Choose your currency.
- Enter the sale value of a typical deal.
- Set the commission from your agreement — a percentage of the sale, or a flat amount per deal if that is how your plan pays.
- Enter your base pay for the period.
- Enter how many sales you expect to close to project total earnings.
Formula
Rate is the agreed percentage. Where commission is paid on gross profit rather than sale value, enter the profit figure as the sale value instead.
Example calculation
A £5,000 sale at 7.5%, with £2,000 base pay and 4 deals:
Commission on 4 sales = £1,500
Total earnings = £3,500
Variable share of pay ≈ 43%
Frequently asked questions
Is commission paid on revenue or profit?＋
Both models exist. Revenue-based commission is simpler and more common in volume sales; profit-based commission protects margin and discourages heavy discounting. Check which your agreement specifies before comparing offers.
How do tiered commission rates work?＋
A tiered scheme raises the rate once you pass a threshold — for example 5% up to target and 9% above it. Run this calculator once per tier with the sales that fall in each band, then add the results.
Is commission taxed differently?＋
Generally no. In most systems commission is ordinary employment income taxed with your salary, though the withholding on a large one-off payment can look higher in that month before it evens out.
What is a draw against commission?＋
An advance paid to the salesperson before commission is earned, then deducted from later commission. A recoverable draw must be repaid if commission falls short; a non-recoverable draw effectively becomes a minimum income. Which type applies changes the arrangement completely, so check the wording.
What happens to commission if a sale is refunded?＋
Most agreements claw the commission back, either as a deduction from the next payment or as a debt. Clawback windows vary from a few weeks to a year. This matters most where returns are common, and it should be written down rather than assumed.
Is a higher rate on a smaller base better than a lower rate on a larger one?＋
Only the resulting amount matters, so work out both. A five per cent rate on gross revenue and a fifteen per cent rate on gross profit can produce very different pay on the same sale, depending on the margin. Always establish what the percentage is applied to before comparing offers.
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Assumptions & limitations
Every figure here comes from a simplified model. Keep these limits in mind when reading your result:
- Assumes a single flat commission rate — tiered, accelerated and capped schemes need separate runs.
- Excludes tax, national insurance and pension deductions from total earnings.
- Assumes every deal closes at the same value and no commission is clawed back on refunds.