Commission Calculator
Updated on 22 Oct 2026 · Checked by Aotob
On $50,000 of sales you earn $2,800 in commission.
With $2,500 base pay that is $5,300 for the period, before tax.
Commission
$2,800
Sales over $40,000 earn 8%, so the next $1,000 of sales pays $80.
Show the working
40,000 × 5% + 10,000 × 8% = 2,800.00
Commission by sales
| Sales | Commission | Total pay |
|---|---|---|
| 25,000 | 1,250.00 | 3,750.00 |
| 37,500 | 1,875.00 | 4,375.00 |
| 50,000 | 2,800.00 | 5,300.00 |
| 62,500 | 3,800.00 | 6,300.00 |
| 75,000 | 4,800.00 | 7,300.00 |
| 100,000 | 6,800.00 | 9,300.00 |
Questions people ask
How is commission worked out?
Sales × the commission rate. With tiers, each slice of sales earns its own rate, so the higher rate only applies above the target.
Is commission taxed?
Yes, as normal pay. In the US bonus-style payments may have 22% federal tax withheld up front, settled on your return.
Commission on revenue or profit?
Most plans pay on revenue. Some pay on gross profit, which makes discounting less tempting.
Updated 22 Oct 2026Source: Standard business accounting formulasChecked by AotobBefore tax. Not financial advice.Report an issue