Commission Calculator
Calculate sales commission earnings with flat or tiered rates. Designed for Nigerian sales professionals and business owners.
₦210,000
Commission Earned
7.0%
Effective Rate
₦2,790,000
Remaining (after commission)
Commission Breakdown
Frequently Asked Questions
What is a typical sales commission rate in Nigeria?
Commission rates in Nigeria vary by industry: financial services (insurance, investments) 5–20%, real estate 5–10% of property value, FMCG / direct sales 3–8%, telecoms/mobile money agents 1–5%, equipment sales 3–10%. Higher-value and harder-to-close deals typically earn higher rates.
What is a tiered commission structure?
Tiered commissions increase the rate as sales volume grows, incentivising higher performance. For example: 5% on the first ₦1M in sales, 8% on ₦1M–₦5M, and 10% on anything above ₦5M. This rewards top performers significantly more and drives revenue growth.
Should commission be on gross sales or net sales?
Most companies pay commission on net sales (after returns and discounts). This aligns the salesperson's interest with profitability. Commission on gross sales can incentivise salespeople to offer excessive discounts. Always clarify whether the base is gross or net before accepting a commission agreement.
Are sales commissions taxable in Nigeria?
Yes. Commission income is taxable as personal income under PITA (Personal Income Tax Act). If you are an employee, PAYE applies. If you are an independent sales agent, you self-assess and pay PIT. The current top marginal rate for high earners is 24%.
What is an effective commission rate?
The effective rate is your total commission divided by your total sales, expressed as a percentage. In a tiered structure, the effective rate is always between the lowest and highest tier rate. Understanding your effective rate helps you compare different commission structures.