Quick answer: commission = sales x rate. 42,000 of sales at 6% is 2,520. With tiers, check whether each band is paid at its own rate or all sales at the top rate reached; the same sales can pay 2,560 or 3,360.
Flat and tiered commission
Flat: commission = sales x rate. 42,000 of sales at 6% pays 2,520. Tiered, each band at its rate: with 4% up to 10,000, 6% up to 30,000 and 8% above, 42,000 of sales pays 400 + 1,200 + 960 = 2,560. Tiered, all sales at the reached rate: the same sales pay 8% of 42,000 = 3,360. Check which one your plan uses; the difference is large.
Paid salary plus commission and want the yearly picture? Convert the base with the wage calculator; commissions also count in the overtime rate, see the blended overtime calculator.
Real estate commission
A home sale commission is usually a percent of the sale price, split between the listing and buying brokerages, and then between each agent and their broker. For a 500,000 sale at 5%, the total is 25,000; split evenly between brokerages, each side gets 12,500, and an agent on a 70/30 split with their broker keeps 8,750. Rates and splits are negotiated; enter your own figures in the flat-rate mode.
Sources: 29 CFR 778.117. Rules checked . Found a problem? Tell us.
Questions
How do I calculate a 5% commission?
Multiply sales by 0.05. On 8,000 of sales that is 400.
Is commission counted for overtime?
For non-exempt employees, commissions are generally part of the regular rate used for overtime under federal rules.
What is a draw against commission?
An advance paid each period that is later subtracted from commissions earned. If commissions are 3,000 and the draw was 2,000, the next payment is 1,000. Plans differ on whether an unearned draw must be repaid.