The commission calculator is a fairly straightforward tool, but one that can add quite a lot of convenience to your life. If you are in a sales-based role, it can be the difference between making money and losing it. You can use a commission calculator to determine your remuneration with a percentage base. You can fill in either the commission amount, commission percentage, or the sale price to get the figures you require.
The process for the calculating of a commission is exceptionally straightforward and only involves the use of percentages. 1. Identify your sale price 2. Multiply it by your commission percentage 3. Divide it by 100 An example: You are a car salesperson who gets two percent commission for every vehicle you sell. You sell a car for $10,000. The commission amount = $10,000 (sale price) x commission percentage (2%) / 100 You made $200 in commission. Then, who absorbs that cost? You will need to work out the revenue now, which you can do with a percentage decrease formula. The revenue = the sale price – sale price x commission percentage / 100. Revenue = $10,000 - $10,000 x 2% / 100 Or, if the buyer pays for the commission, you need to establish the percentage increase in the cost using the percentage increase formula. Price with the commission = the base price + base price x commission percentage / 100.
If you are involved in retail, or you’re a salesperson, being able to understand figures and percentages is crucial. Otherwise, you will struggle to find out if you’re breaking even, and how far you can discount a product before you lose money. After you finish with a commission calculator, you may want to try out a margin calculator or a discount calculator. Both can be valuable sales tools.