How the commission calculator works
Last updated 10 November 2026
Commission rewards sales. This calculator handles a simple rate, optional base pay and a higher rate above a target.
How it works
- Commission = sales × rate.
- Extra = (sales − target) × extra rate, only if sales are above the target.
- Total pay = base + commission + extra.
Worked example
With the starting figures:
- Commission is R 7 500.
- Total pay is R 7 500.
How commission is worked out
Commission rewards sales. The simplest form is a percentage of sales. Many jobs add a higher rate once sales pass a target, and some pay a base salary on top. This calculator handles all three parts and shows the total.
The three parts
The total is base pay plus commission plus extra commission.
- Base pay: a fixed amount for the period, which can be zero.
- Commission: sales multiplied by the rate.
- Extra commission: only the sales above the target are multiplied by the extra rate.
An example in words
Suppose the rate is a small percentage of sales, with a target and a higher rate above it. Sales up to the target earn the normal rate. Only the amount above the target earns the higher rate. The calculator shows each part so you can see where the total comes from.
Check the definition of sales
Contracts define sales differently. Some count the price including VAT, some exclude it, and some subtract returns and cancellations. Some pay commission when the sale is made and others when the customer pays. Read your contract or ask your employer before you rely on the figures.
Tax and take-home pay
Commission is part of your income, and your employer takes tax from it like any other pay. The calculator gives the gross amount. To see what reaches your account, try the take-home pay calculator. If you earn commission as a freelancer, see the freelance pricing calculator.
Planning with the numbers
Try different sales amounts to see how pay changes as you pass the target. Because only the sales above the target earn the higher rate, the jump is gradual and not sudden. This helps when you plan a month or when you compare two commission plans offered by different employers.
Things to watch
- Check how your contract defines sales, for example before or after VAT and returns.
See the take-home pay calculator for tax. Read the full disclaimer.