Commission Calculator Formula
Understand the math behind the commission calculator. Each variable explained with a worked example.
Formulas Used
Commission Earned
commission = sales * commission_rate / 100Revenue After Commission
net_revenue = sales - (sales * commission_rate / 100)Variables
| Variable | Description | Default |
|---|---|---|
sales | Total Sales(USD) | 50000 |
commission_rate | Commission Rate(%) | 10 |
How It Works
How to Calculate Commission
Formula
Commission = Total Sales x (Commission Rate / 100)
Commission structures vary widely. Common models include flat-rate commission, tiered commission (higher rates for higher sales), and draw against commission.
Worked Example
A sales rep closes $50,000 in sales with a 10% commission rate.
sales = 50000commission_rate = 10
- 01Commission = $50,000 x 10% = $50,000 x 0.10 = $5,000
- 02Revenue after commission = $50,000 - $5,000 = $45,000
Ready to run the numbers?
Open Commission Calculator