Pricing & Profit Tools

Commission Calculator

Calculate sales commission earned on total revenue, with optional base salary component.

Sales & Commission

₹
%
₹

Payout

Commission Earned₹7,500.00
Sales Volume₹1,50,000.00
Commission (5%)₹7,500.00
Total Compensation₹7,500.00

Sales Commission Calculator: Compute Sales Rep Commission Instantly

Calculate commission earned by sales staff for any sales amount and rate with this free tool.

What Is a Sales Commission Calculator?

A sales commission calculator multiplies the total sales amount by the commission rate to give the commission earned. For example, 5% on 2,00,000 rupees equals 10,000 rupees.

Use it to calculate individual rep commissions, total payouts, and sales incentive budgets.

Types of Sales Commission Structures

Straight commission is a fixed percentage of all sales. Tiered commission increases when sales exceed targets. Base plus commission combines a salary with a smaller commission rate.

This calculator handles straight percentage commission. For tiered structures, calculate each tier separately.

Commission Rates by Industry

SaaS sales: 5-10%. Insurance: 5-20%. Real estate: 1-3%. Retail: 1-5%.

Set rates that motivate without cutting too deeply into your profit margin.

Invoiced vs Collected Commission

Some businesses pay commission when an invoice is raised. Others pay only when the invoice is collected. Paying on collected revenue aligns incentives with actual cash flow.

If you pay on invoiced amounts, consider clawback clauses for invoices that remain unpaid.

Tracking Commission for Payroll

Accurate commission calculation builds trust with your sales team. Use this calculator every payout cycle to ensure correct amounts.

Record commission payouts in your accounting system as a business expense.

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Frequently Asked Questions

Common questions about Sales Commission Calculator: Compute Sales Rep Commission Instantly on Tez Invoice.

How do I calculate sales commission?

Multiply sales amount by the commission rate. For 5% on 2,00,000: commission is 10,000.

What is a fair commission rate?

Retail: 1-5%. Insurance: 5-20%. SaaS: 5-10%. Research your specific industry.

Should commission be paid on invoiced or collected revenue?

Collected revenue aligns incentives with cash flow. Invoiced revenue carries uncollected invoice risk.

Is sales commission a business expense?

Yes. Commission is a deductible business expense.

Is this tool free?

Yes. Free with no sign up.

Does this work on mobile?

Yes. Fully responsive.

Is my data stored?

No. In-browser only.

Can I use this for business?

Yes.

Where can I create invoices?

Use the free Invoice Generator on Tez Invoice.