Enter the total sale amount and the rate of commission into the calculator to determine the commission amount. This calculator can also evaluate any of the variables given the others are known.

## 60/40 Commission Formula

The following formula is used to calculate the commission for a 60/40 split.

C = T * R

Variables:

- C is the commission amount ($) T is the total sale amount ($) R is the rate of commission (decimal)

To calculate the commission, multiply the total sale amount by the rate of commission. For a 60/40 split, the rate of commission would be 0.6 for the person receiving 60% of the commission and 0.4 for the person receiving 40% of the commission.

## What is a 60/40 Commission?

A 60/40 commission is a type of payment structure often used in sales or real estate industries, where the salesperson or agent receives 60% of the commission from a sale, while the remaining 40% goes to the company or broker. This split is typically used to cover the costs of business operations, marketing, and other expenses incurred by the company or broker. The exact percentage split can vary depending on the company’s policies and the individual’s level of experience or performance.

## How to Calculate 60/40 Commission?

The following steps outline how to calculate the 60/40 Commission using the formula C = T * R.

- First, determine the total sale amount ($).
- Next, determine the rate of commission (decimal).
- Next, gather the formula from above = C = T * R.
- Finally, calculate the commission amount.
- After inserting the variables and calculating the result, check your answer with the calculator above.

**Example Problem : **

Use the following variables as an example problem to test your knowledge.

total sale amount ($) = 500

rate of commission (decimal) = 0.6