Commission Calculator 2026
Calculate your commission earnings for straight, tiered, or draw-against-commission structures. See your total comp, monthly take-home, and projections at different sales levels.
Quick Answer
Commission pay = sales revenue × commission rate. On $200,000 in sales at 10%, you earn $20,000 in commission. Add a $60,000 base salary and your total annual comp is $80,000 — $6,667/month. Tiered structures pay higher rates as you hit revenue milestones.
Commission Structure
Enter $0 for pure commission roles
Your Commission Breakdown
Commission Earned
$20,000.00
Effective rate: 10.00%
Total Annual Compensation
$70,000.00
Base + Commission
Monthly Take
$5,833.33
Bi-weekly Take
$2,692.31
On $200,000.00 in sales with a 10.00% commission structure, you earn $20,000.00 in commission. Combined with $50,000.00 base, your total comp is $70,000.00/year — $5,833.33/month.
Commission at Different Sales Levels
| Annual Sales | Commission | Total Comp | Monthly |
|---|---|---|---|
| $100,000.00 | $10,000.00 | $60,000.00 | $5,000.00 |
| $150,000.00 | $15,000.00 | $65,000.00 | $5,416.67 |
| $200,000.00 | $20,000.00 | $70,000.00 | $5,833.33 |
| $300,000.00 | $30,000.00 | $80,000.00 | $6,666.67 |
| $500,000.00 | $50,000.00 | $100,000.00 | $8,333.33 |
| $750,000.00 | $75,000.00 | $125,000.00 | $10,416.67 |
| $1,000,000.00 | $100,000.00 | $150,000.00 | $12,500.00 |
Commission Calculator by State
Commission Reference Table
$50,000 base salary · Various commission rates · 2026
| Annual Sales | 5% Rate | 8% Rate | 10% Rate | 15% Rate |
|---|---|---|---|---|
| $100k | $55.0k | $58.0k | $60.0k | $65.0k |
| $200k | $60.0k | $66.0k | $70.0k | $80.0k |
| $300k | $65.0k | $74.0k | $80.0k | $95.0k |
| $500k | $75.0k | $90.0k | $100.0k | $125.0k |
| $750k | $87.5k | $110.0k | $125.0k | $162.5k |
| $1000k | $100.0k | $130.0k | $150.0k | $200.0k |
Total comp = $50k base + commission at each rate. Values shown in thousands.
Frequently Asked Questions
How do I calculate my commission?
For straight commission: multiply your total sales revenue by your commission rate. For example, $200,000 in sales × 10% = $20,000 in commission. For tiered structures, apply different rates to each tier of revenue — 5% on the first $100k, 8% on the next $100k, and 12% above $200k. Add your base salary to get total compensation.
What is a good commission rate?
Commission rates vary widely by industry. SaaS/tech sales typically range from 8–15% of ARR sold. Real estate agents earn 2–3% per side. Insurance: 5–20% of premium. Retail: 2–7%. Financial advisors: 0.25–1% AUM. Manufacturing reps: 5–15%. The right rate depends on your average deal size, sales cycle, and base salary structure — high-ticket, long-cycle sales justify higher rates.
What is a draw against commission?
A draw against commission is an advance payment — typically monthly — that is credited against future commission earnings. If you receive a $2,000/month draw and earn $30,000 in commission by year-end, the draw ($24,000) is subtracted, leaving $6,000 in additional pay. Draws can be 'recoverable' (you owe it back if commission doesn't cover it) or 'non-recoverable' (forgiven regardless of performance).
How is commission taxed?
Commission income is taxed as ordinary income at your normal federal and state marginal rates — the same as your salary. If paid as a separate check, your employer may withhold at the IRS flat supplemental rate of 22% (for amounts under $1 million). This is just a withholding rate, not your actual tax rate; you'll true-up at filing. High commission earners should make estimated quarterly payments to avoid underpayment penalties.
What is an OTE (On-Target Earnings) salary?
OTE (On-Target Earnings) is the total annual compensation — base salary plus commission — that a sales rep is expected to earn if they hit 100% of their quota. For example, a job posting showing '$120,000 OTE' might consist of a $70,000 base plus $50,000 in commission at quota. It's used to compare sales roles. Always ask what percentage of reps actually hit quota to assess how realistic the OTE is.
What is the difference between gross and net commission?
Gross commission is the total commission earned before any deductions. Net commission is what you actually receive after taxes, any draw repayments, split arrangements (in real estate), and business expenses. An agent who earns $40,000 in gross commission at a 70/30 brokerage split takes home $28,000 gross, then subtracts taxes, desk fees, and marketing costs to arrive at true net income.
How does tiered commission work?
Tiered (or accelerator) commission structures apply progressively higher rates as you hit sales milestones. For example: 5% on the first $100k in sales, 8% on $100k–$200k, and 12% on everything above $200k. A rep closing $250k in sales would earn: $5,000 (tier 1) + $8,000 (tier 2) + $6,000 (tier 3) = $19,000. Tiers incentivize performance beyond quota — every dollar above a threshold is worth more.
Can I negotiate my commission structure?
Yes — commission structures are often negotiable, especially the tier thresholds and accelerator rates. Focus your negotiation on the quota level (lower quota = easier to earn full OTE), the accelerator rate above quota (more upside), and draw terms. Strong candidates with a proven track record can sometimes negotiate a higher base-to-commission ratio or a non-recoverable draw during ramp-up periods.