Comprehensive Calculator Guide
Sales commission is the sales value multiplied by the commission rate and divided by 100. Someone who sells SAR 85,000 at 3% earns SAR 2,550 in commission, and with a SAR 6,000 base salary their month's total is SAR 8,550. Enter sales, rate and base pay to see both figures at once.
How commission is calculated
Commission = sales × rate ÷ 100, in every field. Most plans pair a fixed base salary with a variable commission, so the calculator adds the two to show total pay. If you work on commission only, leave the base at zero.
The total is gross, before any deductions such as social insurance contributions.
Which amount is commission paid on?
Your contract decides: gross invoices, net sales after returns and discounts, or only payments actually collected. VAT is normally excluded because it is not company revenue: an invoice of SAR 11,500 including VAT is SAR 10,000 of sales, so 3% commission is SAR 300, not SAR 345.
Tiered commission
Many plans raise the rate as sales grow, for example 3% on the first SAR 50,000 and 5% above it. The higher rate usually applies only to the slice in its tier: on SAR 80,000 that is 50,000 × 3% = 1,500 plus 30,000 × 5% = 1,500, so SAR 3,000. Run the calculator once per tier and add the results, unless your plan applies the top rate to everything once a target is hit.
How to Use
- 01Enter the sales value commission is paid on.
- 02Enter the rate as a percentage: type 3 for 3%.
- 03Enter your base salary, or leave it at zero.
- 04Read the commission and total pay; for tiered plans, calculate each tier separately and add them.
Formula Used
Commission = sales × rate ÷ 100 | Total = base salary + commissionPractical Examples
Example 1: salary plus commission
Sales SAR 85,000 at 3% with a SAR 6,000 base: commission SAR 2,550, total SAR 8,550.
Example 2: a property broker
A SAR 1,200,000 sale at an agreed 2.5%: commission SAR 30,000.
Example 3: tiered plan
3% on the first SAR 50,000 and 5% above, on sales of SAR 80,000: 1,500 + 1,500 = SAR 3,000.
Important Tips
- To find your effective rate, divide commission by sales and multiply by 100.
- Before accepting a commission-based job, work out your pay in a weak month as well as a strong one.
Common Mistakes to Avoid
- Applying the top tier rate to all sales when the plan applies it to the slice above the threshold.
- Typing the rate as a decimal such as 0.03 instead of 3, which makes commission 100 times too small.
Frequently Asked Questions
- How do I calculate sales commission?
- Multiply sales by the rate and divide by 100: SAR 40,000 at 5% gives SAR 2,000.
- Is commission calculated before or after VAT?
- Usually before, since VAT is passed on to the tax authority and is not revenue. Your contract has the final word.
- How do I find the rate if I know the commission?
- Divide the commission by sales and multiply by 100: SAR 1,800 on SAR 60,000 of sales is 3%.
- Does the total include deductions?
- No. It is gross pay before social insurance or any other deduction.