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

## Tax Commission Formula

The following formula is used to calculate the tax commission.

TC = P * r

Variables:

- TC is the tax commission ($)
- P is the principal amount ($)
- r is the tax rate (decimal)

To calculate the tax commission, multiply the principal amount by the tax rate. The result is the tax commission.

## How to Calculate Tax Commission?

The following steps outline how to calculate the Tax Commission using the formula TC = P * r.

- First, determine the principal amount ($).
- Next, determine the tax rate (decimal).
- Next, gather the formula from above = TC = P * r.
- Finally, calculate the Tax Commission.
- 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.

principal amount ($) = 500

tax rate (decimal) = 0.15