Commission Basics

Commission is a performance-based payment calculated as a percentage of a sale. It aligns the seller's incentive with revenue: the higher the sale, the higher the earnings. This commission calculator computes the commission, the net proceeds the seller keeps, and the effective rate in one step.

Common Commission Structures

Flat-rate: a single percentage on every sale. Tiered: escalating rates as volume crosses thresholds. Split: a shared commission divided by agreed percentages. Draw vs. commission: a guaranteed base advanced against future commissions. Know your plan before quoting an expected payout.

Negotiating Your Rate

Benchmarks vary by industry — real estate typically 5–6% total (split between buyer and seller agents), retail sales 2–10%, SaaS 10–30% of first-year value. Higher-ticket items with longer cycles usually carry higher rates to compensate for slower closing.