From the deal amount and commission rate, compute the commission a salesperson or agent earns.
Input Data
Results
At a glance:The commission is the deal amount multiplied by the commission rate.
Formula
commission = salesAmount × commissionRatePct%
$$\text{Commission} = \text{Sales Amount} \times \text{Commission Rate}$$How to Use
- Enter the deal amount.
- Enter the commission rate.
- Read the earned commission.
FAQ
What commission rates are typical?
There is no single standard — it depends heavily on industry, product and sales model. High-value, long-cycle, expertise-heavy sales (property, insurance, enterprise software, expensive equipment) tend to carry higher rates; fast-turnover low-ticket retail tends to be lower. Structures include base-plus-commission, tiered (higher rate as you sell more), target bonuses, caps and team splits. A 'reasonable' rate comes from benchmarking peers while balancing incentive and cost control. This tool handles the simplest fixed rate for quick estimates.
Is commission taxable?
Yes. In Hong Kong, commission is income from employment or services and is usually taxed under salaries tax (employees) or profits tax (self-employed/independent agents). The figure here is pre-tax; actual take-home is after tax. Allow for tax when estimating your disposable income, and check IRD guidance or an accountant for complex cases.
Can commission be clawed back on returns or bad debt?
It depends on the contract. Many schemes have a clawback: if a deal is returned, refunded or the client defaults within a set period, the commission already paid may be recovered or withheld. This ensures commission reflects truly completed and collected sales. Read your contract's terms on returns, refunds and collection before estimating income. This tool shows gross commission only.
What rates are reasonable, and what structures exist besides fixed rate?
No universal rate — it hinges on industry, product and sales model, balanced against incentive and cost. Roughly: high-ticket, long-cycle, expertise-heavy products (property, insurance, B2B) carry higher rates because each deal is hard-won; fast, low-ticket retail is lower, relying on volume. Besides a single fixed rate (this tool's model), common structures are: (1) base-plus-commission for stability; (2) tiered rates (e.g. 3% up to 1M, 5% above) to push higher targets; (3) target bonuses; (4) caps to control cost; (5) team splits from a commission pool. Employers balance motivation with cost; agents should understand their structure to forecast income accurately.
Is commission taxed, and is it clawed back on returns or bad debt?
Both touch 'actual take-home'. On tax: yes, commission is taxable — employees fold it into salaries tax, self-employed/agents into profits tax; this tool shows pre-tax gross, so net is after your rate. On clawback: it depends on the contract — many schemes recover commission if the deal is returned, refunded or the client defaults, to ensure it reflects genuinely completed and collected sales. So beyond amount and rate, check the contract's return/refund/collection and clawback clauses. This tool shows gross commission only; pair it with the Sales Revenue calculator.
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.