This commission calculator estimates how much you will earn from a sale by considering the total sales revenue and the commission percentage. There is in depth information on how to approximate this figure below the form.
How does this commission calculator work?
The algorithm behind this commission calculator applies the formulas explained below while is taking account of these variables that should be provided:
- Commission level (CP) expressed as a percent from the sales made;
- Amount of each sale (SA1 …San) included in the calculation. As it can be observed this tool is flexible as it allows as many sales by case by simply pressing “+ 1 Sale” button.
- Total Sales Value = SA1 + SA2 + SA3 + …+ SAn
- Estimated commission earned = Total Sales Value * CP * 0.01
What is a commission?
In business, a commission usually expressed a proportion from a sales value represents an incentive a sales entity (physical or juridical) gets from another party, as a result of selling certain goods of services of the another party.
Usually commission is either established in direct relation with a quantity or with certain sales revenue generated.
It is a very used scheme or incentivising real estate agents, retailers, merchandisers and similar workers.
Example of a calculation
Let’s consider that a sales agent negotiated to receive 1% commission for every sale of a real estate property he makes in the name of a residential company. Considering that in March 2015 he manages to sell the following properties let’s assume how much does him get at the end of the month:
- One apartment sold at $100,000
- One house sold at $250,000
- One penthouse sold at $300,000
■ Total Sales Value = $700,000.00
■ Commission value = $7,000.0003 Mar, 2015