Sales Commission Calculator

Work out commission owed on a sale and the amount the business keeps.

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About this calculator

A simple, fast commission calculator for sales teams, agencies, recruiters and anyone paid a percentage of what they sell. Enter the sale amount and the commission rate to see the commission due and what the business keeps. Useful for checking a payslip, quoting a referral fee, or modelling what a commission structure costs the business per deal.

The formula

Commission = Sale amount × (Rate ÷ 100) Business keeps = Sale amount − Commission

Worked example

A £2,500 sale at 10% commission:

  • Commission = £250
  • Business keeps = £2,250

Common mistakes

  • Not agreeing whether commission is on the net (ex-VAT) or gross amount — always base it on net.
  • Paying commission on booked revenue that later refunds or churns.
  • Stacking commission on top of discounts so a discounted deal pays the same commission as a full-price one.

Frequently asked questions

Almost always on the net (ex-VAT) amount — the VAT belongs to the tax authority, not the deal.

Highly sector-dependent: 5–10% is common in B2B sales, 10–20% for agencies and referrals, 15–30% for recruitment fees.

Revenue-based is simpler; profit-based aligns the salesperson with margin and discourages heavy discounting. Many businesses blend the two.

Assumptions & limitations

Flat single-rate commission on the amount entered; tiered and accelerator structures need each band calculated separately.

Sources & verification

This calculator applies the standard formula published above to the figures you enter — it relies on no external statutory data. The formula and the worked example were checked by hand against each other.

Formula last verified: 24 July 2026
Maintained by: Steve Davis, Founder & Editor — see our editorial standards

Spotted an error or an out-of-date figure? Report it — corrections are prioritised over all other work (see our corrections policy).

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