Finance Calculators
Commission Calculator
A commission is a share of a sale. At a flat rate it is the amount times the rate. On a tiered (marginal) table each bracket's rate applies only to the slice of the sale inside it, so the effective rate rises with the amount. The split divides the result between the producer and the house.
Calculator
Formula
Flat commission = sale amount × rate ÷ 100. Tiered commission = the sum over brackets of each bracket's slice × its rate ÷ 100. Producer share = commission × producer share % ÷ 100.
About This Calculator
What It Does
This calculator works out the commission earned on a sale. Enter the sale amount and a rate — one flat rate, or a tiered table where each bracket's rate applies only to the slice of the sale inside it — and it returns the total commission and the effective (blended) rate. It then splits the commission between the producer who earned it and the house at a producer share you set.
Worked Example
The page opens in flat mode: a 100,000 sale at 5 %. Commission = 100,000 × 5 % = 5,000. With a 70 % producer share, the producer earns 5,000 × 70 % = 3,500 and the house keeps 1,500; the two add up to the 5,000 total. Switch to the tiered mode with the default table — 5 % up to 50,000, 7.5 % to 100,000, 10 % above — and the same 100,000 sale earns 50,000 × 5 % = 2,500 on the first bracket plus 50,000 × 7.5 % = 3,750 on the second, 6,250 in all. The effective rate is 6,250 ÷ 100,000 = 6.25 % — between the 5 % and 7.5 % brackets, not the 7.5 % top rate.
Real-World Usage
Use it to check what a sale is worth in commission before you sign, to compare a flat deal with a tiered one, to see the blended rate a tiered table produces, or to work out the producer and house shares of a listing or a sales deal.
Local Context
Commission structures vary by industry and by country — real estate, insurance, car sales and recruitment each use their own rates, bands and thresholds, and some split the commission differently between the producer and the brokerage. This calculator uses the rates you enter and does not assume any country's convention; it gives an estimate and is not a substitute for the terms of your own agreement.
Last reviewed: October 2026.
Frequently Asked Questions
How do I calculate a commission?
Multiply the sale amount by the rate and divide by 100. A 100,000 sale at 5 % earns 5,000. On a tiered table you do this bracket by bracket: with 5 % up to 50,000, 7.5 % to 100,000 and 10 % above, a 100,000 sale earns 50,000 × 5 % + 50,000 × 7.5 % = 2,500 + 3,750 = 6,250.
What is a tiered (marginal) commission?
A tiered commission applies each rate only to the part of the sale that falls inside its bracket, the way income-tax brackets work. The rate on the whole sale is therefore the effective rate — the commission divided by the amount — which sits between the lowest and the highest bracket rate rather than equalling the top one.
How does the producer/house split work?
The commission is divided between the producer who made the sale and the house (the brokerage or agency). At a 70 % producer share, a 5,000 commission gives the producer 3,500 and the house 1,500. The two components always sum to the total commission.
Why does my effective rate differ from my rate?
On a flat rate the effective rate is the rate. On a tiered table the effective rate is a blend: it is lower than the top bracket's rate because the lower slices earned the lower rates. It rises towards the top rate as the sale grows.