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Business · United States

Commission Calculator

Flat, tiered (graduated), base-plus, real-estate split & draw commission. Accurate, instant and free — for United States.

Plan type

What these mean:

$
%
Commission
$5,000commission
Commission
$5,000

A 10% flat commission on $50,000.00 of sales is $5,000.00.

Commission

$5,000.00

Price the product behind the sale with the Markup Calculator, or check the margin left after commission with the Profit Margin Calculator.

Methodology

Five ways commission is paid

Commission is a percentage of sales, but the structure changes the payout. This tool covers the five most common plans: flat (one rate on everything), tiered (graduated rates, band by band), base + commission (salary plus a rate, giving OTE), real-estate split (one side, divided agent/broker), and a draw (advance netted against earnings).

Flat

rate × sales

commission = sales × rate ÷ 100

$50,000 @ 10% = $5,000.

Tiered

graduated by band

Σ (band amount × band rate)

$150k → 5% × $100k + 8% × $50k = $9,000.

Worked example · $40,000 base + 5% on $200,000
Base
$40,000
Commission
$10,000
OTE
$50,000
  1. 1
    Tiered is graduated, not top-rate-on-everything: Each rate applies only to the sales inside its band. Moving into an 8% tier does not re-price earlier sales at 8% — the first band keeps its own rate, just like income-tax brackets.
  2. 2
    Take it further: Price the product behind the sale with the Markup Calculator, or check the margin left after commission with the Profit Margin Calculator.
Worked cases

Real-estate split & draw against commission

A property commission is quoted for one side and then split between agent and broker. On a $400,000 sale, a 2.88% side commission is $11,520; at a 50/50 split the agent nets $5,760.

Real estate is fully negotiable (post-NAR settlement)

Since the NAR settlement took effect in August 2024, buyer-broker compensation is set in a written buyer-agency agreement rather than advertised on the MLS. Enter the rate you actually agreed — there is no longer a "standard" 6% to assume.

A draw is an advance, not extra pay

Earn $3,000 against a $4,000 draw and you netted −$1,000: you were paid $1,000 more than you earned. Under a recoverable draw that shortfall carries forward and is deducted from future commissions; under a non-recoverable draw the employer eats it.
FAQ

Frequently asked questions

A flat plan pays one rate on the whole sales amount — 10% on $50,000 is $5,000. A tiered plan pays graduated rates: each rate applies only to the sales inside its own band, exactly like income-tax brackets. On $150,000 with 5% on the first $100,000 and 8% above, you earn $5,000 + $4,000 = $9,000 — not 8% on the entire $150,000. Crossing into a higher tier never re-prices your earlier sales.

Base-plus pays a fixed salary and adds a commission rate on sales. On-target earnings (OTE) is the total you make when you hit quota: base + rate × sales. A $40,000 base plus 5% on $200,000 of sales is $40,000 + $10,000 = $50,000 OTE. The base is guaranteed; the commission is variable, so actual pay moves with performance.

A property commission is usually quoted for one side (the listing side or the buyer side). Multiply the sale price by that side rate, then apply the agent’s split. On a $400,000 sale, a 2.88% side commission is $11,520; at a 50/50 split the agent takes $5,760 and the broker keeps $5,760. Splits vary widely (often 50/50 up to 90/10 or higher for top producers).

Yes. Since the National Association of Realtors settlement took effect in August 2024, commissions are explicitly negotiable and are no longer advertised on the MLS as an offer to buyer brokers. A buyer’s agent commission is now set in a written buyer-agency agreement signed before touring homes. Enter the rate you actually negotiated rather than assuming a customary figure.

A draw is an advance paid against commission you are expected to earn. At period end you net earned commission minus the draw. Earn $3,000 against a $4,000 draw and the result is −$1,000: you were paid $1,000 more than you earned. Under a recoverable draw that shortfall is carried forward and deducted from future commissions; under a non-recoverable draw the company absorbs it.

Yes — it is completely free with no sign-up, and every calculation runs entirely in your browser. Nothing you enter is sent to a server or stored.

Sources

Method, assumptions & references

Method & assumptions Sources: National Association of Realtors — Settlement facts · Investopedia — Commission Updated Jul 2026

Methodology: flat = sales × rate; tiered = Σ (band amount × band rate), each rate on its own band only; base-plus OTE = base + sales × rate; real-estate side = price × side rate, agent = side × split; draw net = earned − draw (negative = recoverable shortfall). All calculations run client-side; nothing is stored.

Cross-links

Set the selling price with the Markup Calculator, or see the margin left after paying commission with the Profit Margin Calculator.

How we calculate this

Reviewed by Reckonist Editorial · Last reviewed 4 July 2026. Figures follow the methods and sources set out in our editorial standards.

Commission formulas are standard arithmetic identities. Figures are for planning guidance only and do not account for taxes, withholding, chargebacks, caps, accelerators or plan-specific rules. This is not financial or legal advice.

Keep going

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