Commission Calculator
Pick a flat rate, a tiered plan or a real-estate sale. Enter the sales or price and the rates, and you get the commission with every band or split shown, the effective rate, and what the other tier type would have paid.
Optional; added to the total.
Commission
$3,600.00
$45,000 × 8%
Total pay
$3,600.00
no base
Effective rate
8%
Per $1,000 sold
$80.00
Marginal versus retroactive tiers
5% to $25,000, 7.5% to $50,000, 10% above.
| Sales | Marginal | Effective rate | Retroactive | Rate applied | Difference |
|---|---|---|---|---|---|
| $10,000 | $500 | 5.00% | $500 | 5% | $0 |
| $25,000 | $1,250 | 5.00% | $1,250 | 5% | $0 |
| $40,000 | $2,375 | 5.94% | $3,000 | 7.5% | $625 |
| $50,000 | $3,125 | 6.25% | $3,750 | 7.5% | $625 |
| $60,000 | $4,125 | 6.88% | $6,000 | 10% | $1,875 |
| $80,000 | $6,125 | 7.66% | $8,000 | 10% | $1,875 |
| $100,000 | $8,125 | 8.13% | $10,000 | 10% | $1,875 |
Real estate commission by sale price
Total commission, then what each agent nets after a 50/50 side split and a 70/30 agent/brokerage split.
| Sale price | Total at 4% | Total at 5% | Total at 6% | Each agent nets (5%) |
|---|---|---|---|---|
| $250,000 | $10,000 | $12,500 | $15,000 | $4,375 |
| $350,000 | $14,000 | $17,500 | $21,000 | $6,125 |
| $450,000 | $18,000 | $22,500 | $27,000 | $7,875 |
| $600,000 | $24,000 | $30,000 | $36,000 | $10,500 |
| $800,000 | $32,000 | $40,000 | $48,000 | $14,000 |
| $1,000,000 | $40,000 | $50,000 | $60,000 | $17,500 |
Reading a commission plan
- Base of calculation: gross revenue, net of discounts, or gross margin? Margin-based plans pay a bigger percentage on a smaller number.
- Tier type: marginal or retroactive. The word "accelerator" usually means retroactive above quota.
- Period and reset: monthly, quarterly or annual tiers; whether sales carry over.
- When it is earned: at signing, at invoice, or at cash collected. Clawbacks on cancellations are common.
- Caps and floors: a cap turns a great quarter into a normal one; a draw sets the floor.
Frequently Asked Questions
How is commission calculated?
Sales × rate. $45,000 of sales at 8% is $3,600. With a base salary, add it on. With tiers, it depends on whether the plan is marginal (each band at its own rate, like tax brackets) or retroactive (the whole amount at the rate of the highest tier reached), which can differ by thousands at the same sales figure.
What is the difference between marginal and retroactive tiers?
Take 5% to $25,000, 7.5% to $50,000, 10% above, on $60,000 of sales. Marginal: $4,125. Retroactive: the whole $60,000 at 10% = $6,000. Retroactive plans create cliffs where one more sale is worth thousands, which is the point of them; read your plan document for the word 'retroactive' or 'accelerator'.
How is real estate commission split?
A 5% commission on a $450,000 sale is $22,500. It is typically split between the listing and buyer sides -- historically 50/50, now often negotiated separately since the 2024 settlement changes -- and each agent then splits their side with their brokerage, commonly 70/30 to 90/10. The listing agent's take-home on that sale at a 50/50 side split and 70% brokerage split is $7,875, before their own expenses and taxes.
What is a draw against commission?
An advance on future commission, paid like a salary and recovered from commissions as they are earned. A recoverable draw must be paid back if commissions fall short; a non-recoverable draw is a guaranteed minimum. Either way, the calculator's commission figure is what you earn; the draw is timing.
How is commission taxed?
As ordinary wages, but often withheld at the flat supplemental rate of 22% federally, which can be more or less than your real marginal rate. Nothing is taxed 'more'; a large commission check simply has more withheld, and the difference settles at filing. Self-employed agents pay both halves of Social Security and Medicare on it.
These calculators apply the federal FLSA overtime rules, the 2025 federal overtime deduction as enacted, and standard pay-period arithmetic. They are estimates, not payroll, tax or legal advice: your state's rules, your employer's policy and your full tax return decide the real figures. Exempt employees get no overtime regardless of what the calculator shows.