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Commission Calculator

Calculate sales commission using straight, salary-plus, tiered, or draw-against-commission structures. See total compensation and effective commission rate.

Real-time results 100% free No sign-up Mobile friendly

Formulas verified against authoritative sources including the CFPB and Federal Reserve. Last reviewed . Editorial policy.

Commission Settings

$
%

Commission Results

Commission Earned

$2,500.00

Total Compensation

$5,500.00

Effective Rate

5.00%

On Sales of

$50,000.00

Frequently Asked Questions

What are the different commission structures?

Straight commission: % of all sales, no base. Salary + commission: fixed base plus % of sales. Tiered: higher rates after hitting thresholds. Draw against commission: advance on future earnings, recouped from commissions.

What is a typical sales commission rate?

Commission rates vary widely by industry: real estate 2.5–3% of sale, insurance 5–15%, tech/SaaS 8–12%, retail 1–5%, financial products 3–8%. Higher rates typically go with longer sales cycles and larger deal sizes.

What is a draw against commission?

A draw is an advance paid to salespeople against future commissions, like a loan. If a salesperson earns $5,000 commission but received a $2,000 draw, they receive $3,000. If they don't earn enough to cover the draw, they may owe the difference back.

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