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Commission calculator: sales and real estate commission

The short answer

To calculate commission, multiply the sale by the rate. A 5% commission on $200,000 is $200,000 × 0.05, or $10,000. If it’s split with a broker or partner, multiply that by the share you keep. To find the rate from a commission you already know, divide the commission by the sale and multiply by 100.

For salespeople, agents and owners setting up a pay plan. Enter the sale and the rate, plus a split or base pay if you have them.

Checked November 5, 2026. How we make these tools

Commission

$3,000.00

5% of $60,000.00.

Kept after the split: $3,000.00
With base pay: $3,000.00

Before taxes. Check your written commission plan for returns, draws and when a sale counts.

How it works

Commission = sale × rate ÷ 100.
After a split = commission × your share ÷ 100.
Rate = commission ÷ sale × 100.

Commission at common rates
Sale	3%	5%	10%	15%
$1,000	$30	$50	$100	$150
$5,000	$150	$250	$500	$750
$25,000	$750	$1,250	$2,500	$3,750
$100,000	$3,000	$5,000	$10,000	$15,000
$200,000	$6,000	$10,000	$20,000	$30,000

Real estate commission

It’s the same math, usually with more splits. Say a home sells for $400,000 and one agent’s side is 3%: that’s $12,000. If the agent keeps 70% after the broker’s share, that’s $8,400 before taxes and costs. Rates and splits are negotiated, so use the numbers in your own agreement.

Setting up a pay plan

Write down what counts as a sale, when it’s paid, and what happens with refunds and cancellations. Check the rate against your margin with the markup and margin calculator: a commission comes out of what’s left after costs, not out of the sale price. Some states have rules on written commission plans and final pay, so check yours.

Common questions

How do I calculate my commission?

Multiply the sale by your rate. $8,000 at 10% is $800. Add any base pay, and take out any split, to see your total.

What is 5% commission on $200,000?

$10,000. Multiply $200,000 by 0.05.

Is 15% a lot for commission?

It depends on your margin and the kind of sale. On a job with a 50% gross margin, 15% of the sale leaves 35% for everything else. On a 20% margin job, it takes most of the profit. Check against your own margin first.

How do I work out a commission rate?

Divide the commission by the sale and multiply by 100. $3,000 on a $60,000 sale is 5%.

Should commission be paid on the sale or the profit?

Paying on the sale is simple, but it can reward discounting. Paying on gross profit ties pay to what the business keeps, though it takes more bookkeeping and more trust. Either way, put it in writing.

Is commission taxed differently?

For employees, commission is wages, so it’s taxed and reported as pay. Ask your accountant how to handle independent contractors or draws.

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