Commission Calculator
Calculate commission amounts, seller revenue, and buyer prices in seconds. Enter your sale price and commission rate to get instant results.
This commission calculator helps you quickly determine commission amounts and their impact on your transactions, whether you're a seller paying commission or a buyer covering the cost.
What is a Commission?
A commission is a fee paid to an intermediary for facilitating a business transaction. Commissions are commonly used in:
- Real estate (5-6% of sale price)
- Sales positions (varies widely by industry)
- Online marketplaces (10-15%)
- Financial services (percentage of investment value)
- Affiliate marketing (percentage of sales generated)
How to Calculate Commission
The basic formula is straightforward:
Commission Amount = Sale Price × Commission Percentage ÷ 100
For example:
- Sale Price: $100,000
- Commission: 5%
- Commission Amount: $100,000 × 5 ÷ 100 = $5,000
Seller Pays Commission
When the seller pays commission, it reduces their actual revenue:
Seller Revenue = Sale Price − Commission Amount
Example:
- Sale Price: $100,000
- Commission: 5% ($5,000)
- Seller Revenue: $95,000
This is the most common scenario in real estate and many sales situations.
Buyer Pays Commission
When the buyer pays commission, it increases the total price they pay:
Total Price = Sale Price + Commission Amount
Example:
- Sale Price: $100,000
- Commission: 5% ($5,000)
- Total Price: $105,000
This structure is less common but may occur in certain markets or by agreement.
Commission in Different Industries
Real Estate
Real estate commissions typically range from 5-6% of the home's sale price. This commission is usually split between the buyer's agent and the seller's agent (often 50/50).
Sales Positions
Sales commissions vary widely:
- Retail: 2-10%
- B2B sales: 5-20%
- High-value items: 1-5%
Online Marketplaces
E-commerce platforms charge:
- Amazon: 8-15% depending on category
- eBay: 10-12.9%
- Etsy: 6.5% + listing fee
Tips for Negotiating Commission
- Research Industry Standards: Know typical rates for your market
- Volume Discounts: Larger transactions may warrant lower percentages
- Service Level: Consider what services are included in the commission
- Market Conditions: In competitive markets, rates may be more flexible
- Get Multiple Quotes: Compare rates from different agents or platforms
Frequently Asked Questions (FAQs)
What is a commission?
A commission is a fee paid to an intermediary (like a sales agent or broker) for facilitating a transaction, typically calculated as a percentage of the sale price.
Who typically pays commission in real estate?
In most real estate transactions, the seller pays the commission, which is then split between the buyer's and seller's agents. However, this can vary by agreement and location.
How do I calculate commission manually?
Multiply the sale price by the commission percentage and divide by 100. For example: $100,000 × 5% = $5,000 commission.
What's a typical commission rate?
Commission rates vary by industry. Real estate typically ranges from 5-6%, sales positions may be 5-20%, and online marketplaces often charge 10-15%.
Is commission tax deductible?
For businesses, commission payments are generally tax deductible as a business expense. For individuals receiving commission, it's considered taxable income.