How do I calculate commission?

Multiply the sale amount by the commission rate as a decimal. A 5% commission on a $20,000 sale is 20,000 times 0.05, which is $1,000. Add any base salary to get total pay.

Yes. In New Zealand, commission is taxable income and has PAYE deducted like wages. Large one-off commissions can push income into a higher bracket for that pay period, so the tax taken can look high. The figure here is gross commission, before tax.

Commission Calculator

Work out how much commission you earn on a sale. Enter the sale amount and your commission rate to see the commission, and add a base salary or wage to see your total pay. It works for any percentage-based commission, such as sales, real estate, or recruitment. All figures are gross, before tax.

Sale amount

Commission rate

Base pay (optional)

$1,000.00

commission earned

Gross, before PAYE tax and deductions.

How to calculate commission

Multiply the sale amount by the commission rate written as a decimal. So a 5% rate is 0.05. If you also earn a base salary or wage, add it to the commission for your total pay.

Worked example

On a $20,000 sale at 5% commission, you earn $1,000. With a base of $1,500 for the pay period, total pay is $2,500 before tax.

Frequently asked questions

Is commission taxed differently?

No, it is taxable income with PAYE deducted like wages. A large one-off commission can have more tax taken in that pay period because of how PAYE is calculated, but it evens out over the year.

Related calculators

Bonus and Commission Tax Calculator: tax on a bonus or commission.
Real Estate Commission Calculator: agent commission on a sale.
PAYE Calculator: take-home pay after tax.
Markup Calculator: markup and margin on a sale.

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