Commission-Only Income Calculator NZ
This calculator helps anyone paid wholly or partly on commission turn an unpredictable income into a workable budget. Commission-based pay is one of the hardest incomes to plan around because it swings from month to month with sales, yet rent, bills and tax still fall due on fixed dates regardless of how the last few weeks went. You enter your average monthly sales, your commission rate, any monthly base salary you are paid on top, and what percentage of your average income you want to draw each month as a steady wage. From these figures the calculator returns your average monthly income, your estimated annual income, the tax you should set aside each month, and a suggested steady monthly draw, letting stronger months build a buffer that covers the leaner ones. Use a conservative, realistic average rather than a recent good month, since overestimating your typical sales is the fastest way to overspend and come up short when commission dips. The tax figure is based on current New Zealand income tax brackets applied to your estimated annual income and excludes ACC levies and GST, which may also apply. This is an indicative planning estimate only, not tax or financial advice, so check your actual position against your own records or a professional before relying on it.
Income tax is estimated on your annual income using the 2025/2026 brackets; set that share aside from each payment. Paying yourself a steady draw below your average builds a buffer for lean months. This excludes ACC and GST, which may also apply. Estimate only, not tax advice.
How it works
The calculator works out your average monthly income as your sales times the commission rate, plus any base. It annualises that, estimates the income tax across the brackets, and shows the monthly tax to reserve. It then suggests a steady monthly draw at the percentage you choose of your average, so good months build a buffer that covers the quiet ones, the core discipline of managing commission income.
Worked example
On $40,000 average monthly sales at 8% commission, your average income is $3,200 a month, about $38,400 a year. The tax to set aside is roughly $470 a month. Drawing 80% of your average, you would pay yourself about $2,560 a month and let the rest build a buffer.
Related calculators
- Commission Calculator: work out commission.
- Real Estate Commission Calculator: property commission.
- Income Tax Calculator: tax on income.
- Goal Timeline Calculator NZ: How Long Any Savings Goal Takes.
- Grocery Inflation Calculator NZ: How Much More Your Shop Costs.
- Bonus and commission tax: the PAYE on each commission payment.