Recruiter Commission Calculator
This tool calculates the commission earned by a recruiter for a single placement based on the candidate's annual salary and a specified commission rate.
Enter the candidate's annual base salary and the recruiter's commission rate percentage.
Calculate Commission
Understanding Recruiter Commission
How Recruiter Commission Works
Recruiter commission is a payment made to a recruiter or agency based on the successful placement of a candidate into a job. It's typically calculated as a percentage of the candidate's starting annual salary or total compensation. This calculator uses the annual base salary as the basis for calculation.
The Simple Commission Formula
The basic formula used here is:
Commission = Candidate Annual Salary * (Commission Rate / 100)
For example, if a candidate is placed at a $70,000 salary with a 10% commission rate, the commission would be $70,000 * (10 / 100) = $7,000.
Commission structures can vary widely between companies and agencies (e.g., tiered rates based on salary level, splits between recruiters, bonus structures), but this calculator provides the most fundamental calculation.
Recruiter Commission Examples
Click on an example to see the calculation steps:
Example 1: Standard Placement
Scenario: Calculate commission for a standard placement.
1. Known Values: Candidate Salary = $60,000, Commission Rate = 10%.
2. Formula: Commission = Salary * (Rate / 100)
3. Calculation: Commission = $60,000 * (10 / 100) = $60,000 * 0.10
4. Result: Commission = $6,000.
Conclusion: The commission earned is $6,000.
Example 2: Higher Salary Placement
Scenario: Calculate commission for a higher salary role.
1. Known Values: Candidate Salary = $80,000, Commission Rate = 15%.
2. Formula: Commission = Salary * (Rate / 100)
3. Calculation: Commission = $80,000 * (15 / 100) = $80,000 * 0.15
4. Result: Commission = $12,000.
Conclusion: The commission earned is $12,000.
Example 3: Executive Placement
Scenario: Calculate commission for an executive-level placement with a common higher rate.
1. Known Values: Candidate Salary = $150,000, Commission Rate = 20%.
2. Formula: Commission = Salary * (Rate / 100)
3. Calculation: Commission = $150,000 * (20 / 100) = $150,000 * 0.20
4. Result: Commission = $30,000.
Conclusion: The commission earned is $30,000.
Example 4: Lower Rate Placement
Scenario: Calculate commission with a lower commission rate.
1. Known Values: Candidate Salary = $50,000, Commission Rate = 8%.
2. Formula: Commission = Salary * (Rate / 100)
3. Calculation: Commission = $50,000 * (8 / 100) = $50,000 * 0.08
4. Result: Commission = $4,000.
Conclusion: The commission earned is $4,000.
Example 5: Mid-Range Salary
Scenario: Calculate commission for a mid-range salary and typical rate.
1. Known Values: Candidate Salary = $75,000, Commission Rate = 12%.
2. Formula: Commission = Salary * (Rate / 100)
3. Calculation: Commission = $75,000 * (12 / 100) = $75,000 * 0.12
4. Result: Commission = $9,000.
Conclusion: The commission earned is $9,000.
Example 6: Specific Rate Example
Scenario: Calculate commission using a specific rate like 13.5%.
1. Known Values: Candidate Salary = $90,000, Commission Rate = 13.5%.
2. Formula: Commission = Salary * (Rate / 100)
3. Calculation: Commission = $90,000 * (13.5 / 100) = $90,000 * 0.135
4. Result: Commission = $12,150.
Conclusion: The commission earned is $12,150.
Example 7: Higher End Mid-Range
Scenario: Calculate commission for a higher end of mid-range salary.
1. Known Values: Candidate Salary = $110,000, Commission Rate = 18%.
2. Formula: Commission = Salary * (Rate / 100)
3. Calculation: Commission = $110,000 * (18 / 100) = $110,000 * 0.18
4. Result: Commission = $19,800.
Conclusion: The commission earned is $19,800.
Example 8: Small Placement
Scenario: Calculate commission for a placement with a relatively small salary.
1. Known Values: Candidate Salary = $45,000, Commission Rate = 10%.
2. Formula: Commission = Salary * (Rate / 100)
3. Calculation: Commission = $45,000 * (10 / 100) = $45,000 * 0.10
4. Result: Commission = $4,500.
Conclusion: The commission earned is $4,500.
Example 9: Rate of 0%
Scenario: What if the commission rate is 0%?
1. Known Values: Candidate Salary = $70,000, Commission Rate = 0%.
2. Formula: Commission = Salary * (Rate / 100)
3. Calculation: Commission = $70,000 * (0 / 100) = $70,000 * 0
4. Result: Commission = $0.
Conclusion: If the rate is 0%, no commission is earned.
Example 10: High Salary, Standard Rate
Scenario: Calculate commission for a high salary and a standard rate.
1. Known Values: Candidate Salary = $120,000, Commission Rate = 15%.
2. Formula: Commission = Salary * (Rate / 100)
3. Calculation: Commission = $120,000 * (15 / 100) = $120,000 * 0.15
4. Result: Commission = $18,000.
Conclusion: The commission earned is $18,000.
Frequently Asked Questions about Recruiter Commission
1. How is recruiter commission typically calculated?
The most basic method is a percentage of the candidate's annual base salary. Some structures use total compensation (including bonuses, etc.), but this calculator uses base salary.
2. What is a standard commission rate for recruiters?
Rates vary widely by industry, agency type (contingency vs. retained), role seniority, and experience. Common rates can range from 8% to 25% or even higher for executive search. 10-20% is frequently seen for many roles.
3. Is commission based on base salary or total compensation?
It depends on the agreement. This tool calculates based on annual *base* salary, which is a common practice. Total compensation includes base salary, potential bonuses, stock options, etc., which would result in a higher commission amount for the same percentage rate.
4. When is commission paid?
Payment terms vary. Often, commission is paid after the candidate starts, sometimes split (e.g., half on start date, half after a guarantee period like 90 days). Some agencies pay only after the guarantee period is cleared.
5. What is a 'clawback' in commission?
A clawback is when a recruiter has to pay back some or all of the commission if a placed candidate leaves the job before a specified guarantee period (e.g., 60 or 90 days). This protects the client.
6. Does this calculator handle tiered commission structures?
No, this tool provides the simplest calculation based on a single, flat percentage rate applied to the entire salary. Tiered structures apply different rates as the salary increases (e.g., 10% on the first $50k, 15% on the amount over $50k).
7. What about splits between recruiters?
This calculator shows the *total* commission for the placement before any internal splits between sourcing recruiters, account managers, or team leads. You would need to apply your internal split percentage to the result shown here.
8. Can I calculate commission if I only know the client fee?
Not directly with this tool, unless you know the relationship between the fee and the salary (e.g., if the fee itself was calculated as a percentage of salary, you'd essentially use that percentage as your "commission rate" here, assuming the full fee goes to the recruiter before splits).
9. Are there taxes on recruiter commission?
Yes, commission is typically considered taxable income and is subject to income tax and other payroll deductions like regular salary. The amount calculated here is the gross commission before taxes.
10. Is the commission rate negotiable?
For agency recruiters, the rate charged to the client is usually based on standard agency terms. The percentage of that fee that goes to the recruiter as commission is part of their compensation plan and is less commonly negotiated on a per-deal basis.
