Commission vs. Hourly Calculator

An estimate to help you plan, not tax advice. It uses 2026 federal figures and a simple state rate, and it does not include every deduction you may qualify for. A tax professional can give you an exact number.

How this works

• It turns the hourly pay into a yearly amount: hourly pay times hours times 52 weeks.
• As an employee, your employer pays half of your Social Security and Medicare taxes. As a contractor, you pay both halves, so the calculator adds about 7.5 percent to match the same take-home pay.
• It subtracts any monthly bonus, then divides by the commission per sale to show how many sales a month and a week you would need.
• Your hours are yours as a contractor, so the same number of sales can take more or fewer hours than the job you are comparing to.

Curious about taxes on commission? Try the 1099 tax set-aside calculator.