Commission Calculator

Use this free online commission calculator to quickly work out how much commission you'll earn on a sale, plus your total earnings when a base salary or fixed pay is included. Simply enter the sale amount and commission rate to get an instant breakdown.


How to Use the Commission Calculator

  1. Enter the total value of the sale in the "Sale Amount" field.
  2. Enter the commission percentage you earn in the "Commission Rate" field.
  3. Optionally enter any fixed pay in "Base Salary / Pay" if your earnings include one.
  4. Click "Calculate Commission" to see the commission amount and total earnings.

How the Result Is Calculated

This is a flat-rate commission calculator. Commission = sale amount × rate ÷ 100, and total earnings = base pay + commission. Both figures are rounded to two decimal places. A blank base pay counts as zero. There is no cap, target or tier built in, so for other plans you run the calculation in parts, as shown below.

Worked Examples

  • Sales executive on salary plus commission: base pay ₹25,000, monthly sales ₹4,00,000, rate 2.5%. Commission = 4,00,000 × 2.5 ÷ 100 = ₹10,000, so total earnings for the month are ₹35,000.
  • Tiered plan: 3% on the first ₹5,00,000 of sales and 5% on anything above, with base pay of ₹20,000. For sales of ₹8,00,000, first enter ₹5,00,000 at 3% with the base pay: commission ₹15,000, total ₹35,000. Then enter the remaining ₹3,00,000 at 5% with base pay left blank: ₹15,000 more. Total earnings are ₹50,000.
  • Property brokerage: a ₹75,00,000 flat at 1% brokerage gives ₹75,000. If the broker is registered under GST, 18% GST on the brokerage, ₹13,500, is added to the invoice, making ₹88,500 payable.

Common Commission Structures

StructureHow it worksUsing this calculator
Straight commissionPay is entirely a percentage of salesLeave base pay blank
Base plus commissionFixed salary with a percentage on topEnter the monthly fixed pay as base
Tiered or slabHigher rate applies to sales above each thresholdRun once per slab and add the commissions
Target-basedCommission paid only on sales beyond a quotaEnter sales minus the quota as the sale amount
Margin-basedPercentage of gross profit rather than revenueEnter the gross profit as the sale amount

Points to Check in Your Agreement

  • Is commission on the value before or after GST? Most agreements use the taxable value, excluding GST. Using the GST-inclusive amount by mistake inflates the result by the tax rate.
  • When is it earned: on booking, invoicing or payment received? Returns, cancellations and bad debts are often clawed back.
  • Tax. Commission paid to employees is part of salary and taxed with it. Commission paid to agents and brokers who are not employees is generally subject to TDS once it crosses a yearly threshold. Check the current rate and limit on the Income Tax Department website.

Frequently Asked Questions

Commission is calculated as (Sale Amount × Commission Rate) ÷ 100. For example, a ₹50,000 sale at a 5% commission rate earns ₹2,500 in commission.

No, the base salary field is optional. If you leave it blank it's treated as zero, and your total earnings will simply equal the calculated commission amount.

Divide the commission by the sale amount and multiply by 100. For example, ₹6,000 earned on sales of ₹2,40,000 is 6,000 ÷ 2,40,000 × 100 = 2.5%. You can then enter that rate here to check other months.

Split your sales into the bands your plan defines, run the calculator once for each band at its own rate, and add the commissions. Enter your base pay in only one of the runs so it is not counted twice.

Usually not. GST collected from the customer belongs to the government, so commission is normally based on the taxable value. On a ₹1,18,000 invoice that includes 18% GST, the taxable value is ₹1,00,000, and 5% commission on it is ₹5,000 rather than ₹5,900. Follow whatever your agreement specifies.
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