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Sales Commission Calculator

Free online tool that helps you calculate the amount of money earned as a commission based on a salesperson's sales and commission rate.

Commission amount

What is sales commission?

Sales commission is a form of compensation paid to a salesperson or sales team for selling a product or service. It is usually calculated as a percentage of the sales price or revenue generated from the sale.

Sales commission serves as a motivation and incentive for salespeople to sell more products or services, as their earnings increase as their sales volume increases. The commission rate can vary depending on the industry, company, and the specific product or service being sold.

For example, if a salesperson sells a product with a total sales value of $10,000 and has a commission rate of 5%, their commission would be $500 ($10,000 x 5% = $500).

Sales commission structures can be simple or complex, depending on the industry and the company's sales goals. Some sales commission structures may offer a base salary plus commission, while others may only offer commission with no base salary.