Commission Calculator — Flat, Tiered & Split Commission
Calculate sales or real estate commission at a flat or tiered rate, see your take-home after a brokerage split and fees, and find the sales volume you need to reach an income goal.
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Commission at Different Sale Amounts
Same rates, split and fees applied to other sale sizes.
| Sale Amount | Gross Commission | Effective Rate | Your Take-Home |
|---|
How this calculator works
- Flat rate: gross commission = sale amount × rate.
- Tiered (marginal): each rate applies only to the part of the sale within its band, like tax brackets — so crossing a threshold never lowers your total.
- Take-home = gross commission × your split − fees per deal. The brokerage or house keeps the rest of the gross.
- Sales volume for a goal = income goal ÷ (take-home per dollar of sales), using the current sale's take-home rate.
By Suhaib Hassan · Formula verified 28 Sep 2026 · How CalculatePilot verifies formulas →
A worked example
A $400,000 sale at a flat 3% gives $12,000 of gross commission. On a 70/30 split, you keep $8,400 and the brokerage keeps $3,600. With the tiered example (5% to $100,000, 3% to $300,000, 2% above), the same sale earns $5,000 + $6,000 + $2,000 = $13,000 gross — an effective rate of 3.25%.
How commission splits and rates work
In real estate and many sales roles, the commission on a deal is split between the individual and their brokerage or employer by a pre-agreed percentage — a "70/30 split" means you keep 70%. Splits often improve as you hit production milestones, and some firms use caps or flat desk fees instead. Real estate commissions are negotiable; since August 2024, National Association of REALTORS® rules no longer allow offers of compensation to buyers' agents on the MLS, and buyers sign written agreements with their agents.
Base salary, OTE and tier styles
Many sales roles include a base salary. On-target earnings (OTE) is base plus the commission expected at 100% of quota. This calculator focuses on commission and take-home after split and fees; add your base separately for a full picture. Tiered plans are usually marginal (each rate applies only to the slice inside its band, like tax brackets). A retroactive plan lifts every dollar to the higher rate once you cross a threshold — the same sales can pay more, but the jump is larger. Confirm which style your plan uses.
Sources
Take-home at a flat 3% commission, by split
Before any per-deal fees or taxes.
| Sale price | Gross commission | 70/30 split | 80/20 split | 90/10 split |
|---|---|---|---|---|
| $200,000 | $6,000 | $4,200 | $4,800 | $5,400 |
| $400,000 | $12,000 | $8,400 | $9,600 | $10,800 |
| $600,000 | $18,000 | $12,600 | $14,400 | $16,200 |
Common commission calculation mistakes
- Applying a tiered rate to the whole sale. In a marginal structure each rate applies only to the part of the sale inside its band.
- Forgetting per-deal fees. Transaction, desk or E&O fees come off your take-home and can matter on smaller sales.
- Treating take-home as income after tax. Commission is taxable. Independent agents also owe self-employment tax and usually need to set money aside.
- Comparing splits without caps. A lower split with a cap can pay more than a higher split with no cap once you pass the cap.
Typical structures by industry
These are common ranges only — your plan document controls the exact rate and base.
| Field | Typical structure |
|---|---|
| Retail / call centers | 2–10%, often tiered on monthly quota, plus base or hourly |
| Real estate | 5–6% of sale price, split between sides then agent/brokerage |
| B2B / SaaS | Base often 40–60% of OTE, with tiers or accelerators above quota |
| Insurance | Higher first-year rate plus smaller renewal (trail) rate |
Results are estimates for planning. Confirm sales definitions, triggers, clawbacks, and tax treatment with your employer, brokerage, or tax advisor. Not professional financial or tax advice.
Real estate commission by sale price and rate
Gross commission at example total rates. Real estate rates are negotiable, and the rate is not set by law.
| Sale price | 2.5% | 3% | 5% | 6% |
|---|---|---|---|---|
| $300,000 | $7,500 | $9,000 | $15,000 | $18,000 |
| $400,000 | $10,000 | $12,000 | $20,000 | $24,000 |
| $500,000 | $12,500 | $15,000 | $25,000 | $30,000 |
| $750,000 | $18,750 | $22,500 | $37,500 | $45,000 |
At a 3% rate a $400,000 sale produces $12,000, which is $8,400 to you on a 70/30 split and $9,600 on an 80/20 split.
Brokerage splits on $12,000 of gross commission
| Split (you / brokerage) | You keep | Brokerage keeps | You keep after a $500 per-deal fee |
|---|---|---|---|
| 50/50 | $6,000 | $6,000 | $5,500 |
| 60/40 | $7,200 | $4,800 | $6,700 |
| 70/30 | $8,400 | $3,600 | $7,900 |
| 80/20 | $9,600 | $2,400 | $9,100 |
| 90/10 | $10,800 | $1,200 | $10,300 |
Quota and over-quota commission
Many sales plans pay a base rate up to a quota and a higher rate above it. With a $100,000 quota, 5% up to the quota and 8% above, a $150,000 sales month pays 5% × 100,000 + 8% × 50,000 = $9,000. Use the tiered setting for this kind of plan, with the first band ending at the quota.
Base salary plus commission
A $50,000 base plus 4% on $600,000 of sales is $50,000 + $24,000 = $74,000 of annual pay. On-target earnings (OTE) means base pay plus the variable pay you earn when you hit quota.
eBay and PayPal fees as a commission
Marketplace and payment fees work like a commission taken from each sale. For most US eBay categories, the eBay selling fees page lists a final value fee of 13.6% of the total sale up to $7,500 and 2.35% above that, plus $0.30 per order of $10 or less and $0.40 above. PayPal's US business fees page lists 3.49% plus $0.49 per checkout transaction (page dated October 1, 2026). Rates vary by category, account and payment type, so check the current rates before you price.
| Sale | eBay fees | As % of sale | You keep |
|---|---|---|---|
| $8.00 | $1.39 | 17.4% | $6.61 |
| $50.00 | $7.20 | 14.4% | $42.80 |
| $100.00 | $14.00 | 14.0% | $86.00 |
| $500.00 | $68.40 | 13.7% | $431.60 |
| $10,000.00 | $1,079.15 | 10.8% | $8,920.85 |
| Sale | PayPal fees | As % of sale | You keep |
|---|---|---|---|
| $10.00 | $0.84 | 8.4% | $9.16 |
| $50.00 | $2.24 | 4.5% | $47.77 |
| $100.00 | $3.98 | 4.0% | $96.02 |
| $500.00 | $17.94 | 3.6% | $482.06 |
| $1,000.00 | $35.39 | 3.5% | $964.61 |
To receive exactly $100 through PayPal checkout at these rates you would need to charge about $104.12, found by (100 + 0.49) ÷ (1 − 0.0349).
Is commission taxed differently?
Commission is taxable income. Employers may withhold on it using the flat supplemental rate or the aggregate method, so a paycheck with commission can show a different withholding rate from a regular one. Check IRS Publication 15 or ask your payroll provider, and remember that independent agents usually pay their own self-employment tax.
Commission guides
- Real estate commission: splits and take-home pay
- eBay fees: final value fee examples
- PayPal fees: what you pay and what to charge
- Sales commission structures explained
Frequently asked questions
Is a 70/30 commission split typical?
Split arrangements vary widely by brokerage, industry and experience — 70/30 is a commonly cited example, but actual splits range broadly and are often negotiable, especially as your production increases.
Does this calculator handle tiered commission structures?
Yes. Choose "Tiered" and set up to three bands. Each rate applies only to the portion of the sale inside its band, the way marginal tax brackets work.
How do I calculate commission on a sale?
Multiply the sale amount by the commission rate — for example, $50,000 × 5% = $2,500. Then multiply by your split percentage and subtract any per-deal fees to get your take-home.
Is commission calculated before or after tax?
Before tax. The figures here are gross commission and take-home after split and fees, before income tax or self-employment tax.
How do I calculate real estate commission?
Multiply the sale price by the commission rate, then apply your split. A $400,000 sale at 3% is $12,000 gross, or $8,400 for you on a 70/30 split.
How do I calculate commission with a quota?
Pay the base rate on sales up to the quota and the higher rate above it. With a $100,000 quota, 5% to quota and 8% above, a $150,000 month pays $9,000.
What is base plus commission?
A fixed salary plus a percentage of sales. A $50,000 base plus 4% on $600,000 of sales is $74,000.
How much does eBay take from a sale?
For most US categories the eBay selling fees page lists 13.6% of the total sale up to $7,500 and 2.35% above, plus $0.30 per order of $10 or less or $0.40 above. On a $100 sale that is $14.00. Check eBay for current rates and your category.
How much does PayPal charge to receive a payment?
PayPal's US business fees page lists 3.49% plus $0.49 per checkout transaction, which is $3.98 on a $100 sale. Rates vary by payment type.
How much should I charge to cover PayPal fees?
Divide the amount you want to receive plus $0.49 by 0.9651. To receive $100 charge about $104.12.
Is commission taxed differently from regular pay?
It is taxable income, but withholding can use a flat supplemental rate or the aggregate method, so it may look different on a paycheck. Check IRS Publication 15 or ask payroll.
What is a typical commission split?
It varies widely by brokerage and experience. A 70/30 split is a common example, and splits often improve as you sell more.
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