Commission Calculator
From sales amount and commission rate (or tiered slabs), compute the commission earned and the effective rate.
Input Data
Results
At a glance:Commission is pay based on a percentage of sales — common for salespeople, agents and brokers. Flat: commission = sales x rate. Tiered/graduated: each slab at its own rate (e.g. first HK$100,000 at 5%, next at 8%). Example: flat 10% on 500k = 50k; tiered 5%/8% = 100k x 5% + 400k x 8% = 37k. Tiered rewards higher sales with a higher marginal rate. WARNING: Clarify gross vs net sales, returns/cancellations deducted, and any draw/clawback. In Hong Kong, commission is employment income (Salaries Tax) or business income if self-employed. Education, not advice.
Formula
Commission = sales × commission rate ÷ 100.
Net amount = sales − commission.
$$\\text{Commission} = \\text{Sales} \\times \\dfrac{r}{100}$$$$\\text{Net} = \\text{Sales} - \\text{Commission},\\quad r = \\text{Commission rate}(\\%)$$How to Use
- Enter the sales amount.
- Enter the commission rate (or use the tiered basis).
- View the commission and effective rate.
FAQ
How is commission calculated?
Flat rate: sales x rate. Tiered: split the sales into slabs, each at its rate, and sum. A tiered plan means the marginal rate rises with sales, so the effective rate is between the lowest and highest slab rates.
Gross sales or net sales?
Clarify the base. Gross sales counts all sales; net sales deducts returns, cancellations and discounts. Commission on net is common to avoid paying on reversed deals. Always confirm which base your plan uses.
What is a draw or clawback?
A draw is an advance against future commission (you get paid now, then 'pay back' from earned commission). A clawback recovers commission if a deal cancels or is found invalid. Both affect your real take-home; read the plan for when commission is finally earned and reversible.
Is commission taxable in Hong Kong?
If you are an employee, commission is part of employment income and subject to Salaries Tax (with progressive rates and allowances). If you are self-employed/agent running your own business, it is business income subject to Profits Tax. The tax treatment differs, so follow the IRD and consult a professional for your situation.
How do I compare a flat vs tiered plan?
Compute the commission at your realistic sales level for each. A flat rate is simple and predictable; a tiered plan can pay more at high sales but less at low sales (because the first slab is lower). Compare the effective rate at your expected volume, and weigh predictability vs upside.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.