Commission Calculator
Calculate sales commission, bonus earnings, and total take-home pay
Sale Details
Sale Amount (₹)
₹
Commission Rate (%)
%
Base Salary (₹, optional)
₹
Bonus Tier (optional)
Sales above (₹)
₹
Bonus rate on excess (%)
%
Commission Earned
—
Total earnings: —
Base Salary—
Bonus (on excess)—
Effective Rate on Sale—
How Commission Works
Commission is a performance-based earning calculated as a percentage of the sale value. It's common in sales roles, real estate, insurance, and financial services. Most commission structures combine a fixed base salary with a variable commission component.
Tiered or bonus commission pays a higher rate on sales above a target threshold — this incentivises salespeople to exceed their quotas. The effective rate shows what percentage of your total sale you're taking home as total earnings.
lightbulb Example
Sale: ₹5,00,000 at 5% commission, ₹25,000 base:
1Commission = ₹5,00,000 × 5% = ₹25,000
2Bonus: if sale > ₹3L, 8% on ₹2L = ₹16,000
3Total = ₹25,000 + ₹25,000 + ₹16,000 = ₹66,000
✓ Effective rate on sale = 13.2%
quizFrequently Asked Questions
Is commission income taxable in India?
Yes. Commission income is fully taxable as "Income from Business and Profession" or as "Salary" depending on whether you're self-employed or salaried. TDS is deducted under Section 194H at 5% for commission paid to intermediaries. Commission received as part of salary is taxed at applicable slab rates.
How do I negotiate a higher commission rate?
Research industry benchmarks — real estate agents earn 1–2%, insurance agents 10–40% first year, financial product distributors 0.5–1%. Document your conversion rate, average deal size, and revenue contribution. Bring data showing your cost per lead and close rate. Companies often pay higher rates on stretch targets, not the base rate.
What is a clawback clause in commission agreements?
A clawback allows an employer to recover paid commission if the client cancels, defaults, or the deal falls through within a specified period. Common in insurance (policy lapses), real estate (deal falls through at registry), and SaaS sales (customer churns within 90 days). Always read commission agreements carefully for clawback conditions before signing.