# How much commission will I earn?

Computes a sales commission from the sale amount and the commission rate, or the rate or the sale amount from the other two.

- Page: https://www.acalculator.org/finance/commission-calculator
- JSON spec: https://www.acalculator.org/finance/commission-calculator.json
- Version: f2928b66925c

## Default answer

Example with the default inputs (Sale amount $12,500.00, Commission rate 8%): At a commission rate of 8%, a sale of $12,500.00 earns $1,000.00.

## Inputs

| Key | Label | Description |
| --- | --- | --- |
| sale | Sale amount | The total sales the commission is paid on. |
| rate | Commission rate | The commission as a percent of the sale amount. |
| commission | Commission | The money earned: sale amount × rate ÷ 100. |

## Outputs

| Key | Label | Description |
| --- | --- | --- |
| sale | Sale amount | The total sales the commission is paid on. |
| rate | Commission rate | The commission as a percent of the sale amount. |
| commission | Commission | The money earned: sale amount × rate ÷ 100. |

## Method

commission = sale amount × rate ÷ 100; rate = commission ÷ sale amount × 100; sale amount = commission ÷ rate × 100.

## Assumptions

- One flat rate applies to the whole sale amount. Tiered or split commissions are not included.
- Arithmetic is exact on the typed decimals; money shows to the cent, halves up (420.175 shows as $420.18).
- The commission is before tax and before any split with a broker or team.

## Worked examples

1. sale = $260,000.00, rate = 3% gives commission = $7,800.00. Source: OpenStax, Prealgebra 2e, section 6.3 "Solve Sales Tax, Commission, and Discount Applications" (https://openstax.org/books/prealgebra-2e/pages/6-3-solve-sales-tax-commission-and-discount-applications), Example 6.27: 0.03 × 260,000 = 7,800.
2. sale = $1,450.00, commission = $87.00 gives rate = 6%. Source: OpenStax, Prealgebra 2e, section 6.3 "Solve Sales Tax, Commission, and Discount Applications" (https://openstax.org/books/prealgebra-2e/pages/6-3-solve-sales-tax-commission-and-discount-applications), Example 6.28: 87 ÷ 1,450 = 6%.
3. commission = $7,800.00, rate = 3% gives sale = $260,000.00. Source: OpenStax, Prealgebra 2e, section 6.3 "Solve Sales Tax, Commission, and Discount Applications" (https://openstax.org/books/prealgebra-2e/pages/6-3-solve-sales-tax-commission-and-discount-applications), Example 6.27 worked back: 7,800 ÷ 0.03 = 260,000.
4. sale = $1,200.50, rate = 35% gives commission = $420.18.

## FAQ

### How do I calculate a commission?

Multiply the sale amount by the commission rate and divide by 100. A 3% commission on a $260,000 house sale is 260,000 × 3 ÷ 100 = $7,800.

### How do I find the commission rate?

Divide the commission by the sale amount and multiply by 100. Earning $87 on a $1,450 sale is a rate of 87 ÷ 1,450 × 100 = 6%.

### How much do I need to sell to earn a certain commission?

Divide the commission you want by the rate, then multiply by 100. To earn $1,000 at 8%, you need to sell 1,000 ÷ 8 × 100 = $12,500.

### Why does the calculator not accept a commission larger than the sale?

That would be a rate above 100%, which is not a commission on the sale. The calculator gives a message instead of an answer.

### Does this work for real estate commissions?

Yes, for one flat rate on the sale price. A real estate commission is often split between the agents and their brokers; enter the rate that applies to you, or work out the full commission first and then take your share of it.

### Is the commission before or after tax?

Before tax. Commissions are taxable income like wages, and an employer usually withholds tax from them. Take-home commission depends on your tax situation.

### How is the answer rounded?

The calculator works with the exact decimals you type and shows money to the cent, with halves rounded up. A 35% commission on $1,200.50 is exactly $420.175, which shows as $420.18.

## Sources

- OpenStax, Prealgebra 2e, section 6.3 "Solve Sales Tax, Commission, and Discount Applications", Examples 6.27 and 6.28. https://openstax.org/books/prealgebra-2e/pages/6-3-solve-sales-tax-commission-and-discount-applications
- Internal Revenue Service, Publication 15 (Circular E), Employer’s Tax Guide: supplemental wages include commissions. https://www.irs.gov/publications/p15