Free Sales Commission Tool · 2026

Calculate your commission
earnings instantly

Flat rate, tiered, base+commission, and OTE — all in one free tool. Built for US sales reps and managers. No signup required.

Flat Rate Tiered Commission Base + Commission OTE / Quota
Calculate My Commission
Average Commission Rates — USA 2025
SaaS / Software Sales
10–20% ARR
Recruitment / Staffing
20–30% Placed salary
Financial Services
5–12% AUM
Real Estate Agents
2.5–3% Sale price
Manufacturing / Wholesale
7–15% Net sales
Avg. US Commission Income
$66,805 BLS 2024
$66,805
Avg. US Commission Income
10–20%
Typical SaaS Rate
20–30%
Recruitment Rate
3–6%
Real Estate Rate
4 Modes
Commission Structures
Free Tool
Sales commission calculator
Revenue you generated this period
$50K
Your percentage of sales closed
10%
Your commission earnings
$5,000
Based on your inputs
Total Sales $50,000
Commission Rate 10.0%
Your Payout $5,000
Company Retains $45,000
Your fixed monthly salary
$4K
Revenue closed in selected period
$80K
8%
Total earnings /month
$10,400
Base + commission combined
Base Salary $4,000
Commission Earned $6,400
Total Earnings $10,400
Commission % of Total 61.5%
Your total sales for this period
$120K
From ($) Up to ($) Rate (%)
Total commission earned
$0
Across all tiers
Your assigned annual sales target
$500K
How much of your quota you've hit
85%
$60K
%
Actual annual earnings
$0
At current quota attainment
On-Target Earnings (OTE) —
Actual Sales Closed —
Commission Earned —
Base Salary —
vs. OTE —
Monthly Take-Home —
Reference Data
Average commission rates by industry — USA
SaaS / Software Sales
10–20%
Of Annual Recurring Revenue (ARR) closed. Enterprise AEs often earn 10–12%.
Recruitment & Staffing
20–30%
Of the placed candidate's first-year salary. One of the highest rates in sales.
Real Estate
2.5–3%
Per agent side (buyer or seller). Total transaction commission is 5–6%.
Financial Services
5–12%
Of AUM or premiums placed. Residual commissions common in insurance.
Insurance Agents
5–10%
First-year premium. Renewal commissions add 1–3% annually thereafter.
Manufacturing / Wholesale
7–15%
Of net sales value. Lower rates for high-volume, commodity products.
Pharmaceutical / Medical
5–10%
Plus bonuses tied to prescription volume and territory targets.
Affiliate Marketing
5–30%
Highly variable. SaaS affiliate programs average 20–30% recurring.
Guide
How to calculate sales commission

The basic commission formula

Sales commission is a percentage of the revenue a salesperson generates, paid as compensation for closing deals. The basic calculation is straightforward:

Commission = Total Sales × Commission Rate (%)

For example: closing $80,000 in sales at a 10% rate earns $8,000 in commission. Use the Flat Rate calculator above for this structure.

Base salary + commission

Most sales roles combine a fixed base salary with a variable commission component. This gives reps income security while maintaining performance incentives. Your total earnings are:

Total = Base Salary + (Sales × Commission Rate)

The ratio of base to variable pay — called the "pay mix" — typically ranges from 50/50 to 70/30 (base/variable) depending on the seniority and complexity of the role.

Tiered commission structures

Many companies use accelerators — commission rates that increase as you hit higher sales thresholds. This structure rewards top performance disproportionately.

  • Tier 1: 5% on the first $50,000 in sales
  • Tier 2: 8% on $50,001–$100,000
  • Tier 3: 12% on everything above $100,000

A rep closing $120,000 would earn: $2,500 + $4,000 + $2,400 = $8,900 total.

OTE and quota attainment

On-Target Earnings (OTE) is the total comp a rep earns at exactly 100% quota. Use the OTE calculator to model different attainment scenarios and understand your actual take-home at various performance levels throughout the year.

OTE = Base Salary + (Quota × Commission Rate)
FAQ
Common questions about sales commissions
A commission rate is the percentage of a sale that a salesperson earns as payment for closing a deal. Rates vary widely by industry, company, and seniority — from 2–5% in retail to 20–30% in recruitment. Your commission rate is set in your employment contract or independent contractor agreement.
Calculate the commission for each tier separately and add them together. If Tier 1 is 5% on $0–$50K and Tier 2 is 10% on everything above, a rep closing $80K earns: ($50K × 5%) + ($30K × 10%) = $2,500 + $3,000 = $5,500. Use the Tiered calculator above to do this automatically.
OTE stands for On-Target Earnings — the total compensation (base + commission) a rep earns when hitting exactly 100% of their sales quota. For example, a $60K base with a $500K quota at 10% commission gives an OTE of $110,000. Most sales reps earn between 80–120% of their OTE in any given year.
Commission income is taxed as ordinary income at federal and state rates. Employers may withhold at the federal supplemental rate of 22% on commissions paid separately from regular wages. Independent contractors earning commissions also owe self-employment tax (15.3%). Consult a tax professional for your specific situation — this calculator does not account for taxes.
SaaS commission rates typically range from 10% to 20% of the ARR closed. Mid-market Account Executives often earn around 10–12% with an OTE between $120K and $200K. Enterprise AEs may have lower percentage rates but larger deal sizes. Rates also vary based on whether commission is paid on bookings, cash collected, or recognized revenue.
The total commission in a US real estate transaction is typically 5–6% of the sale price, split between buyer's and seller's agents. Each agent then splits their portion with their brokerage — commonly 70/30 (agent/broker). On a $400,000 home at 6%: total commission $24,000 → $12,000 per side → agent keeps $8,400 after a 70/30 split.
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