---
title: "Commission calculator"
description: "Work out sales commission to the cent from the sale amount and the commission rate. Also handles tiered rates and finding the rate from a payout. Free, no sign-up."
canonical: https://www.acquisity.ai/tools/commission-calculator
---

# Commission calculator

> Work out sales commission to the cent from the sale amount and the commission rate. Also handles tiered rates and finding the rate from a payout. Free, no sign-up.

Enter the sale amount and the commission rate to see the commission, to the cent. You can also work out tiered commission, where each part of a sale earns its own rate, or find the rate from a commission you were paid.

Use the tool in a browser at [/tools/commission-calculator](https://www.acquisity.ai/tools/commission-calculator). It is free and needs no sign-up.

## How to calculate commission

Multiply the sale amount by the commission rate. A 5% commission on a $25,000 sale is $25,000 × 0.05 = $1,250.

To find the rate, divide the commission by the sale and multiply by 100: $1,250 ÷ $25,000 × 100 = 5%.

## How tiered commission works

With tiered commission, each part of a sale earns the rate of its own tier. With 5% up to $10,000 and 10% above it, a $25,000 sale pays 5% of the first $10,000 ($500) plus 10% of the other $15,000 ($1,500): $2,000 in all.

Some plans pay the whole sale at the highest rate it reaches instead, which would be 10% of $25,000, or $2,500. Check which one your plan means before you agree to it.

## Setting commission for your sales team

- Pay on money collected, not on the price agreed, so a refund or a failed payment doesn’t pay out. The [invoice due date calculator](https://www.acquisity.ai/tools/invoice-due-date-calculator) shows when each invoice is due.
- Say when commission is paid, for example each month, and what happens if a customer gets a refund.
- Write the rate and any tiers into the agreement before the work starts.
- If a setter books the call and a closer makes the sale, agree how the commission is split between them.

## Questions

### How do I calculate commission?

Multiply the sale amount by the commission rate as a decimal. 5% of $25,000 is $25,000 × 0.05 = $1,250.

### How do I work out my commission rate?

Divide the commission by the sale amount and multiply by 100. $1,250 on a $25,000 sale is 5%. Choose “the rate from a payout” under More options to do it here.

### What is tiered commission?

A plan where each part of a sale earns its own rate, such as 5% up to $10,000 and 10% above. This calculator applies each rate only to the part of the sale inside its tier.

### What is a commission split?

Two or more people sharing one commission, such as a setter and a closer. Work out the full commission, then give each person their agreed share: a 70/30 split of $1,000 is $700 and $300.

### Is commission taxed?

Commission is worked out on the sale, before any tax. It counts as income, so it’s taxed like the rest of your pay. How much depends on where you live and how you’re paid.

### How does this calculator round?

To the nearest cent, with half a cent rounded up. With tiers, the exact amount of every tier is added up first and the total is rounded once, so three tiers of $0.01 at 50% pay $0.02, the same as 50% of $0.03.

## Getting paid by clients?

Acquisity’s CRM ties every payment to its deal, so you can see what each deal has collected and what’s still outstanding. Payments are turned on per workspace. [Payments & Commissions](https://www.acquisity.ai/platform/payments).

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Web page: https://www.acquisity.ai/tools/commission-calculator
Site index for agents: https://www.acquisity.ai/llms.txt