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.
How to Calculate Commission
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
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.
Other Helpful Calculators
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.