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How to Calculate Profit Commission

Commission is a fee paid to an agent, broker or any other intermediary on the accomplishment of certain objectives or goals. For instance, a manager decides that a 5 percent sales commission would be awarded to any salesman whose daily sales exceed $ 5,000. Likewise, a profit commission is an agreed upon amount that is paid to the individual responsible for realizing the profit.

Instructions

    • 1

      Find out the net profit realized. Let's assume that the net profit obtained is $ 2,000.

    • 2

      Find out the profit commission in percent amount. Let's assume that the profit commission is 5 percent of net profit.

    • 3

      Convert the profit commission from percent amount to dollar amount. Using the same example, 5 percent of 2,000 will be: 5/100 x 2000 = $ 100.

      Hence, the profit commission is $ 100.

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