Commission Calculator — Flat, Tiered & Real Estate Splits
Calculate your take-home commission across flat, tiered, and real estate split structures. Handles franchise fees, broker splits, and blended effective rates. Know your true payout.
Commission Calculator
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The Formula
For flat structures the math is straightforward. Tiered (graduated) commissions apply increasing rates to different revenue brackets — much like income tax brackets, the blended effective rate always sits between the lowest and highest tier rate. Real estate splits follow a waterfall: franchise fee off the top of the side commission, then the remainder split between agent and broker. Adding a base salary produces On-Target Earnings (OTE).
Variable Definitions
Sale Amount / Revenue
The transaction value or gross revenue the commission is calculated from.
Commission Rate
A percentage of the sale paid to the salesperson.
Tier Bracket
The dollar range of the sale falling within a given tier (e.g., $0 to $50K).
Gross Commission %
Total commission percentage paid by the seller (typically 5–6% in real estate).
Agent / Broker Split
The agent's share of their side commission after the broker's cut.
Base Salary
Fixed annual salary paid regardless of commission earnings.
On-Target Earnings
Total compensation = Base Salary + Commission (OTE in sales terminology).
How to Use This Calculator
- 1
Select your commission structure: Flat Rate (straight commission), Tiered/Graduated, or Real Estate Agent Split.
- 2
Enter the sale amount or total revenue for this deal.
- 3
Optionally enter a base salary to see total annual compensation (OTE = salary + commission).
- 4
For flat rate: just enter the commission percentage. For tiered: enter each tier limit and rate. For real estate: enter gross commission %, your agent split %, and any franchise fee.
- 5
After calculating, scroll down to view the "Commission Table" — earnings at different volume levels ($5K, $10K, $25K, $50K, $100K, $250K, $500K, $1M).
Common Applications
- Calculate total commission earnings under tiered or graduated structures to set monthly and quarterly sales targets.
- Compare flat-rate versus tiered commission plans to understand which compensation structure benefits your income the most.
- Determine the agent commission split after brokerage fees and franchise deductions for real estate transactions.
Flat rate applies a single percentage; tiered uses brackets; real estate follows a waterfall from gross to net.
Understanding the Concept
Tiered/graduated commission structures are the industry standard for high-performance sales roles: your first dollars earn a lower rate, and as you sell more you "graduate" into higher rates on each marginal dollar. This creates a powerful incentive to push past quotas. In real estate, the franchise fee is subtracted BEFORE the agent/broker split (the "waterfall" order of operations matters enormously — a 6% franchise fee on a 60/40 split effectively reduces the agent's share to ~56.4%). The Commission Table visualizes earnings at standard volume milestones, making it easy to set monthly sales targets.
Frequently Asked Questions
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