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True Calculator

Commission Calculator

Work out the commission on a sale, including fixed payouts and TDS on the payout, to see the net amount you receive.

₹
%
₹

Adds to the percentage commission, e.g. a minimum payout.

%

Gross commission

₹9,000

Net payout after TDS

₹8,100

TDS deducted ₹900

Commission on sales is usually paid on the sale value before GST. TDS on commission is withheld at the applicable rate and reflected in your Form 26AS.

Last updated: April 2026

How this calculator is verified

Checked by True Calculator automated test suite on

  • Formula verified against a published worked example in the automated test suite
  • Edge cases (zero, negative, boundary and unit-mismatch inputs) covered by unit tests

The full verification method is on our how we verify page. Found an error? Tell us and we will re-check it.

When to Use This Calculator

Use the commission calculator whenever you earn a percentage of sales — as a field sales agent, a real estate broker, an insurance advisor or an affiliate publisher. It turns a rate into a payout, and with the TDS field it shows the realistic net figure that lands in the account, which is what budgeting needs. Brokers comparing two principal's terms can run the same sale through both rates; teams can check what the fixed-payout component is worth at different sale sizes. It also helps business owners on the other side: a shop computing what a distributor's 5% cut will cost on an ₹80,000 order gets the same answer, ₹4,000, and can price accordingly. Since commission structures often combine percentage and fixed elements, having one calculator that handles both avoids arithmetic slips at month end.

How to Use This Calculator

  1. Step 1: Enter the sale value on which commission is paid — usually the price before GST.
  2. Step 2: Enter the commission rate as a percentage of the sale.
  3. Step 3: Add any fixed payout, such as a minimum commission or base fee.
  4. Step 4: Enter the TDS rate to see the net amount that actually reaches your account.

Worked Example

A dealer selling ₹80,000 of goods at a 5% commission with a ₹5,000 fixed payout earns ₹9,000 in total commission. With 10% TDS withheld under section 194H, ₹900 goes to tax and ₹8,100 is credited to the account. On a bigger ticket — ₹2,50,000 at 3% — the commission is ₹7,500 with no fixed payout. The TDS deduction appears in Form 26AS and is adjustable against the commission earner's final tax liability.

Tips and Common Mistakes

  • •Tip 1: Confirm whether the rate applies to the GST-exclusive price — it normally does.
  • •Tip 2: Record TDS from Form 26AS; you claim it as a credit while filing your income tax return.
  • •Tip 3: For tiered plans, run each sale slab through separately to see how earnings stack.
  • ✗Mistake 1: Do not compute commission on the GST-inclusive total unless your agreement says so.
  • ✗Mistake 2: Do not ignore the TDS rate in your quote — the net payout is what you actually receive.

Frequently Asked Questions

How is commission calculated?

Commission equals the sale amount multiplied by the rate percentage, plus any fixed payout. The calculator then shows the amount after TDS so you know the actual payout that lands in your account.

Is commission calculated on the price before or after GST?

Usually on the price before GST. When a dealer bills goods worth ₹80,000 plus GST, the 5% commission applies to ₹80,000, not the GST-inclusive total.

What is TDS on commission in India?

Commission paid to individuals and firms attracts TDS — commonly 2% for commission or brokerage under section 194H. The tax deducted appears in your Form 26AS and can be claimed when you file your return.

What is a fixed payout or base amount?

Some sales roles pay a minimum commission regardless of the sale value, or a base fee plus a percentage. Enter that amount in the fixed payout field and it is added to the percentage-based commission.

Can this be used for affiliate or referral income?

Yes — affiliate payouts work the same way. Track the sale value, the affiliate rate, and any TDS deducted, and this gives you the net amount credited to your account.

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