Commission Calculator
Commission Calculator
Info: Calculates the sales commission and total pay (Base + Commission).
Report Bug In the US economy, the most driven professionals don't wait for a salary; they hunt for commission. Whether you are a Real Estate Agent closing a deal or a SaaS Account Executive hitting your quota, the Commission Calculator is your scoreboard. It handles complex structures like "Broker Splits," "Tiered Accelerators," and "Flat Fees," showing you exactly what your hard work is worth.
Understanding your compensation plan is the first rule of sales. Don't let hidden splits or misunderstood tiers eat into your paycheck.
💰 The Payout Formula
While the basic formula is simple, the "Net" amount involves subtraction layers (Splits).
Variables Defined:
- Gross Commission Income (GCI): The total fee generated from the sale.
- Split: The percentage taken by the Brokerage (e.g., 80/20 Split).
- Tier/Accelerator: Higher rates triggered after hitting a specific quota.
🏠 Scenario: The Real Estate "Split"
You sold a house for $500,000. The total commission is 6%. But you have to split that with the Buyer's Agent (50/50), and then give your Broker their cut (20%). What's left for you?
| COMMISSION DISBURSEMENT AUTHORIZATION Ref: #SOLD-500K | |
|---|---|
| Final Sales Price | $500,000.00 |
| Total Commission Rate (6%) | $30,000.00 |
| (-) Buyer's Agent Split (50%) | - $15,000.00 |
| Listing Side GCI (Your Share) | $15,000.00 |
| (-) Brokerage Fee (20% Split) | - $3,000.00 |
| NET AGENT PAYOUT | $12,000.00 |
| Effective Commission Rate: You kept 2.4% of the sale price ($12k / $500k). | |
Agent Tip: New agents often see "$30,000" and start spending it mentally. Real pros know that after splits, taxes, and marketing costs, the "Net" is usually about 40% of the gross number. Always budget on the Net.
US Sales Compensation Models
- Tiered Commission (SaaS): Common in tech sales. You might earn 10% on the first $100k, but if you exceed quota, the rate "accelerates" to 15% or 20%. This incentivizes "blowing out" the number.
- Draw Against Commission: A safety net where the company pays you a minimum monthly salary. If your commissions are lower than the salary, you owe the company the difference (Recoverable Draw).
- Residuals (Trailing): Common in insurance and software. You get a smaller commission (e.g., 5%) every single year the client renews their subscription.
Frequently Asked Questions (FAQs)
What is the difference between Gross and Net commission?
Gross is the total fee paid by the customer. Net is what actually hits your bank account after splits, franchise fees, and sometimes transaction coordinators are paid.
Do I pay taxes on my commission?
Yes, and usually you have to do it yourself. Most real estate agents are 1099 Contractors. You receive the full check but must save roughly 30% of it to pay the IRS quarterly.
What is a "Capped Split"?
In real estate (like at Keller Williams or eXp), once you pay a certain amount to your broker (e.g., $20,000) in a year, you stop splitting and keep 100% of your commission for the rest of the year. This is called "Capping."
How do car salesmen get paid?
Traditionally, it's based on "Gross Profit" (Price - Invoice Cost). They might get 25% of the profit. If they sell a car at a loss (a "Mini"), they get a flat fee (e.g., $100).
Can I negotiate my commission rate?
As a listing agent? Yes. As an employee? Sometimes. Commission structures are often legal contracts, but top performers can often negotiate better splits or higher base rates.
