Percentage Commission Calculator

How it works

Commission is a percentage of the sale value paid as earnings. Multiply the sale amount by the commission rate and divide by 100 to find how much you earn. The remainder stays with the business.

The formula

Why this works: Commission is simply a percentage of the sale value, so the formula finds that proportion of the total. A higher rate or a larger sale both increase the commission linearly, which makes it easy to forecast earnings from a pipeline of deals.

Commission structures

This calculator works for straight-percentage commission. Some roles use tiered rates for different sales volumes or a base salary plus commission. In those cases, calculate each tier separately and add the results. To understand the overall margin you keep on each deal, the profit margin calculator shows revenue less cost as a percentage. If your total income includes both commission and a base salary, you can find out how much your basic pay would change after a salary negotiation. To check what percentage any commission amount is of your total income, enter your total and commission into the percentage of a number calculator.

Worked examples

When to use this

Commission calculations come up in a wide range of UK roles and industries:

• Estate and letting agents: UK estate agents typically charge between 0.75% and 3% commission on a sale. On a £350,000 property, the difference between a 1% and 2% fee is £3,500. Knowing the exact commission amount helps sellers compare agents accurately.
• Sales roles with variable pay: Many UK B2B sales roles pay a base salary plus a percentage of sales revenue. Calculating your commission on each deal helps you track your earnings in real time against your monthly or quarterly target.
• Online marketplaces and affiliate programmes: Amazon, eBay, Etsy, and affiliate networks all charge or pay commission rates expressed as percentages of the sale price. Knowing the exact fee on each transaction is essential for pricing profitably.
• Financial advisers and mortgage brokers: Regulated advisers in the UK often earn a percentage of the investment or loan arranged. The FCA requires this to be disclosed, and checking the stated percentage against the actual charge is straightforward with this calculator.

Understanding the result

Commission scales linearly. Double the sale value and you double the commission for the same rate. Double the rate and you double the commission for the same sale. This makes it easy to forecast earnings from a pipeline of different deals at a glance.

Remember that gross commission is before tax. In the UK, commission is treated as employment income and is subject to income tax and National Insurance. If you are self-employed, it counts as trading income and you will pay tax and National Insurance through Self Assessment.

Related concepts

➡ If your commission is based on the net sale value after VAT, you may want to remove VAT from the gross invoice total before calculating the commission. ➡ To track how your commission earnings have grown compared to a previous period, the percentage increase calculator shows the growth in your earnings as a rate. ➡ To find the minimum sale value needed to earn a target commission amount, the reverse percentage finder calculates the whole from a known part and percentage.

How to do this in Excel

Put the sale value in A1 and the commission rate percentage in B1. The formula multiplies the sale by the rate and divides by 100. You can also write it as =A1*(B1/100) for clarity. For a column of sales, copy the formula down and use =SUM(C1:C10) to total commissions.

How to do this without a calculator

Find 1% of the sale value by dividing by 100. Multiply by the commission rate. For a 1.5% rate on a £280,000 sale: 1% = £2,800, 0.5% = £1,400, so 1.5% = £4,200. For whole-number rates on round sale values, this mental arithmetic is quick. For complex figures, estimate by rounding the sale to the nearest thousand and multiplying the rate.

Real world uses

• Calculating an estate agent's commission on a UK property sale.
• Working out a letting agent's management fee as a percentage of monthly rent.
• Checking how much of a sales target bonus you earn on each individual deal closed.
• Calculating the platform fee or affiliate commission earned on a product sold online.
• Verifying the commission amount stated in a self-employed sales contract before signing.

Common mistakes

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