Commission Calculator

See how much commission you'll earn per deal, per month, and per year — and what your total income looks like with a base salary added in.

Commission Pay Calculator
Total Annual Income
Commission per Deal
Monthly Commission
Annual Commission
Commission % of Income
Base Salary vs Annual Commission

How the Commission Calculator Works

If part of your pay comes from commission, your income can swing a lot from month to month. This calculator translates your average deal size, commission rate, and deal volume into clear monthly and annual numbers, then adds any base salary to show your total expected income.

The Commission Formula

Commission per deal is Sale Amount × (Commission Rate ÷ 100). Multiply by the number of deals you close per month for monthly commission, and by twelve for the annual figure. A $10,000 average sale at 5% earns $500 per deal; close four a month and that's $2,000 monthly, or $24,000 a year before base salary.

On-Target Earnings (OTE)

Many commission roles advertise an OTE — on-target earnings — which combines base salary with the commission you'd earn at 100% of quota. Your real income depends on actually hitting those targets, so understand the assumptions behind any OTE figure. The "commission % of income" result shows how much of your pay is performance-based and therefore variable.

Tip: Budget on your base plus a conservative commission estimate, not the best-case month. Commission income is variable, and lenders, landlords, and your own cash flow all prefer a realistic average over an optimistic peak.

Understanding Your Pay Mix

A role that's mostly base salary offers stability with limited upside, while a high-commission role offers bigger potential earnings but more risk. Neither is universally better — it depends on how predictable your sales are and how much control you have over closing. Use this calculator to model a few scenarios (slow month, average month, strong month) so you know your realistic income range.

Frequently Asked Questions

How do I calculate how much commission I'll earn?
Multiply your average sale amount by your commission rate as a decimal to get commission per deal. Multiply by the number of deals you close to get your total. A $10,000 sale at 5% earns $500 per deal.
What is OTE (on-target earnings)?
OTE is your expected total pay when you hit 100% of your sales quota. It combines base salary with on-target commission. Actual earnings can be higher or lower depending on whether you exceed or miss your targets.
How is commission income taxed?
Commission is taxed as ordinary income, just like salary. Employers often withhold it at a higher supplemental rate, but your actual tax depends on your total annual income and bracket. Set aside money if you're paid as a contractor without withholding.
Should I budget on base salary or total commission income?
Budget on your base plus a conservative commission estimate rather than your best month. Commission income is variable, so planning around a realistic average protects you during slower sales periods.
What is a base-plus-commission pay structure?
It combines a guaranteed base salary with commission on your sales. The base provides stability while commission rewards performance. It's the most common structure for sales roles because it balances security with earning potential.

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Written & reviewed by the CalcHeadquarters Editorial Team
Every calculator is built from published formulas and authoritative sources, then independently checked for accuracy before it goes live. Last updated June 2026. Read our editorial policy & methodology.