Commission Calculator
A flat or tiered sales commission, with the effective rate on the sale and what the seller actually keeps after a split.
| Tier | Amount | Rate | Commission |
|---|---|---|---|
| First | $0.00 | 3.00% | $0.00 |
| Above threshold | $400,000 | 3.00% | $12,000 |
| Total | $400,000 | 3.00% | $12,000 |
A single flat rate is the case where both rates are equal.
Σ tier amount × tier rate · Marginal, not retroactive.
commission / sale · Falls between the two tiers.
A clear path from inputs to results.
A flat or tiered sales commission, with the effective rate on the sale and what the seller actually keeps after a split.
How to use
- Set sale price ($).
- Set commission rate (%).
- Set tier threshold ($).
- Set rate above threshold (%).
- Read the headline metrics, then check the table for the detail.
The formula
Reference: Marginal tiering: each rate applies only to the slice above its threshold (Horngren et al., Cost Accounting).
Worked example
At the default inputs
- Sale price ($): 400000; Commission rate (%): 3; Tier threshold ($): 0; Rate above threshold (%): 3; Agent split (%): 100
- 1
First tier → $0.00 Second tier → $12,000
Commission: $12,000 · Effective rate: 3.00% · Agent share: $12,000
Interpreting the result
A $400,000 sale at 3.00% up to $0.00 and 3.00% above pays $12,000.
Assumptions & limitations
- Commission is paid on the sale price, not on profit.
- Two tiers only.
- No clawback or split beyond the one entered.
Frequently asked questions
Is the rate applied to the whole sale?
No — the second rate applies only above the threshold, which is why the effective rate sits between the two.
How does the split work?
The agent share is the percentage of the gross commission the individual keeps.
What is a typical real estate commission?
Often 5–6% in the US, split between the two brokers; commercial and industrial rates are lower.
Methodology last reviewed 2026-10-22. Results are informational and not financial or engineering advice — see our disclaimer.