Commission Calculator
Commission earned and net payout
- Net to seller₹49.00 L98%
- Commission₹1.00 L2.0%
| Net to seller | ₹49.00 L | 98.0% |
| Commission | ₹1.00 L | 2.0% |
Understand the result
About the Commission Calculator
What is a commission calculator?
A commission is a payment for arranging a sale, usually a percentage of the sale value, sometimes plus a flat fee. Real estate brokers, insurance and mutual fund distributors, sales staff and marketplace sellers are all paid this way. When several agents share a deal, the commission is split between them.
This commission calculator works out the commission on a sale from the rate, any flat fee and your share of a split, and the effective percentage you earn.
How this calculator works
Commission is a percentage of the transaction value, sometimes with a fixed fee added. The effective rate shown accounts for that fixed fee, which is why it can differ from the percentage you entered.
Where the commission is shared — between a brokerage and an agent, or with a referrer — the split percentage separates your share from the rest.
Formula
Commission = sale value × rate ÷ 100 + fixed fee Your share = commission × split ÷ 100 Net to seller = sale value − commission Effective rate = commission ÷ sale value × 100
Worked example
- A ₹50,00,000 property sale at 2% commission.
- Commission = ₹1,00,000; the seller nets ₹49,00,000.
- On a 50/50 split with the brokerage, the agent receives ₹50,000.
Commission, GST and TDS on a property sale
| Item | Amount |
|---|---|
| Commission (2%) | ₹1,00,000 |
| GST at 18% (if the broker is GST-registered) | ₹18,000 |
| Total paid by the client | ₹1,18,000 |
| TDS under 194H at 2% (if the payer must deduct) | ₹2,000 |
Commission for services is subject to 18% GST when the agent is registered. Businesses paying commission above ₹20,000 in a year generally deduct 2% TDS under Section 194H; individuals not running a business usually do not.
Assumptions & important notes
What this calculator assumes
- The commission is calculated on the full sale value, not on profit.
- GST on the commission and TDS deducted by the payer are not included.
Important notes
- Commission income is taxable. Payers usually deduct TDS under section 194H at 2% (5% before the 2024 revision).
- If your commission income crosses the GST threshold, GST applies on the commission itself.
Frequently asked questions
What is a typical real-estate commission in India?
Usually 1–2% from each side of a sale, and one to two months’ rent on a rental agreement. Rates are negotiable and vary by city.
Is TDS deducted on commission?
Yes. Section 194H requires TDS on commission and brokerage above the annual threshold. You claim credit for it when filing your return.
How are sales commissions usually structured?
Common structures are a flat percentage of sales, tiered rates that rise once targets are met, a fixed fee per sale, or a base salary plus commission. For shared deals, the commission is split in agreed percentages before any deductions.
Is commission income taxable?
Yes. Commission paid to an employee is part of salary. Commission earned as an independent agent is business or professional income, taxed after deducting related expenses; any TDS deducted by payers is credited against the final tax.
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