Commission is an amount paid out on the sale of an item.
Payment is often as a percentage of revenue, a percentage of profit, or a designated amount per unit sold.
Sales Commission = Sale Price x (Revenue Commission / 100%)
Profit Commission = Profit x (Profit Commission / 100%)
Unit Commission = Quantity Sold x Commission per Unit
- Accounting Tools – How to calculate a commission – Some examples of how commission can be calculated.
- Wikihow – How to calculate commission – More examples of how commission structure can be set up and calculated.
- Wagepoint Blog – How commission works and how to choose the right payroll structure – How commission and payroll structure can be combined.