Commission Rate Calculator

Formula

The formula to calculate the Commission Rate (COMR) is:

\[ COMR = \frac{C}{SV} \times 100 \]

Where:

Commission Rate (COMR): The percentage of the total sales value that is earned as commission.
Total Commission Earned (C): The total amount of commission earned in dollars.
Total Sales Value (SV): The total value of sales in dollars.
Significance: Helps in determining the effectiveness of sales strategies and the profitability of sales efforts.

Let's say the total commission earned (C) is $5,000 and the total sales value (SV) is $100,000. Using the formula:

\[ COMR = \frac{5,000}{100,000} \times 100 = 5 \]

So, the Commission Rate (COMR) is 5%.