Commission Calculator
Calculate sales commission amounts and percentages instantly
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Commission Amount
$100.00
Understanding Sales Commission
Sales commission is a crucial component of many sales-based careers, providing motivation and rewards for successful sales performance. Understanding how to calculate commission is essential for both employers and sales professionals.
How Commission Works
Commission can be structured in several ways:
- Flat Rate Commission: A fixed percentage of each sale
- Tiered Commission: Increasing percentages based on sales volume
- Split Commission: Shared between multiple sales representatives
Industry Standards
Commission rates vary significantly by industry:
- Real Estate: 5-6% (often split between agents)
- Car Sales: 20-40% of dealer profit
- Insurance: 30-70% of first-year premium
- Retail: 2-20% of sale price