Staff Commission Calculator

Staff Commission Calculator

Work out what a practitioner earns from services, retail and tips in a pay period, and what the clinic keeps, under a flat rate, a sliding scale or wage plus commission.

Most clinics, spas and salons pay practitioners at least partly by commission: a share of the service revenue they bring in, often with a separate rate for retail and with tips passed straight through. The structure decides both what your staff take home and what your clinic keeps, so it's worth running the numbers before you offer one.

Enter one pay period's revenue for one practitioner and choose how you pay: a flat percentage, a sliding scale that pays more above a threshold, or an hourly wage plus a smaller commission. If you deduct product cost before commission, as many injectable clinics do, enter that too.

Staff Commission Calculator
Zdrovia: https://www.zdrovia.ca/resources/commission-calculator/

Commission Calculator

Staff Commission for One Pay Period

Works out what a practitioner earns from services, retail and tips, and what the clinic keeps. Use the totals from one pay period, before tax.

How you pay commission

One percentage of service revenue.

Treatments this person delivered

E.g. toxin or filler used. 0 if you don't deduct

Products this person sold

Passed through in full

For the per-hour check

Same revenue at other flat rates

RateService commissionClinic keeps (services)
30%$3,600.00$8,400.00
35%$4,200.00$7,800.00
40%$4,800.00$7,200.00
45%$5,400.00$6,600.00
50%$6,000.00$6,000.00

This pay period

Practitioner earns

$5,550.00

$4,950.00 before tips

Clinic keeps

$8,550.00

From services and retail

Breakdown

Service commissionOn $12,000.00$4,800.00
Retail commission (10%)$150.00
Tips$600.00
Total$5,550.00
$61.88 an hour before tips over 80 hours. In Canada, an employee paid by commission must still earn at least the provincial minimum wage for every hour worked. Check whether tips can count toward it in your province; in Ontario they can't.
Estimates only. Commission terms, employment standards and tax treatment vary by province and by whether the practitioner is an employee or an independent contractor. This is not legal, tax or accounting advice; check your provincial employment standards and talk to your accountant before setting pay.

Zdrovia creates a commission entry from every sale using your rules by service, category or role, then tracks it from pending to approved to paid, alongside tips. Included on Small Practice and Team Practice. See how commissions work →

Commissions in Zdrovia

Stop working out commission in a spreadsheet

Zdrovia creates a commission entry from every sale using your rules by service, category or role, then tracks it from pending to approved to paid, alongside tips. Included on Small Practice and Team Practice.

Start free, no card requiredSee how commissions work →

The three common commission structures

A flat rate pays the same percentage of every dollar of service revenue. It's the easiest to explain and to check. In spas, salons and massage clinics, rates between 30% and 50% of service revenue are common, depending on who supplies the room, the equipment and the clients.

A sliding scale pays one rate up to a revenue threshold and a higher rate on the revenue above it. It rewards busy practitioners without overpaying for a slow month. The higher rate usually applies only to the revenue above the threshold, which is how this calculator works; some clinics instead apply it to everything once the threshold is reached, which costs noticeably more.

Wage plus commission pays an hourly wage and a smaller commission on top, often 5% to 15%. It gives new staff a stable income while their book fills and makes minimum-wage compliance simple, at the cost of paying for quiet hours.

Deducting product cost before commission

In injectable and medical aesthetics clinics, product can be a large share of the price. A syringe of filler or a vial of toxin is a real cost the clinic carries, so many clinics pay commission on revenue after product cost rather than on the full ticket. Whatever you choose, write it into the agreement: the difference between commission on gross and on net is often thousands of dollars a year per injector.

Employees, contractors and minimum wage

If a practitioner is your employee, commission counts as wages, and provincial employment standards still require at least minimum wage for every hour worked. A slow pay period on straight commission can fall below it, so the calculator shows pay per hour as a check.

Many clinics engage practitioners as independent contractors on a fee split instead. Whether someone is really a contractor depends on the working relationship, not on what the agreement calls them, and the CRA and provincial bodies look at control, tools, and chance of profit or risk of loss. Get advice before you set up either arrangement.

Retail commission and tips

Retail is usually commissioned separately and at a lower rate, typically around 10%, because the margin on products is smaller than on services. Tips belong to the staff member: pass them through in full and keep a record of how they were distributed.

Clinic management software for teams →One calendar, commission rules with an approval queue, and revenue by practitioner for clinics with 2 to 20 staff.

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FAQ

Frequently asked questions

How do you calculate commission?

Multiply the revenue the commission applies to by the commission rate. For example, $12,000 of service revenue at 40% is $4,800. If you deduct product cost first, subtract it before multiplying: $12,000 minus $2,000 of product at 40% is $4,000. Add retail commission and tips separately to get total pay for the period.

What is a typical commission rate for estheticians or massage therapists?

Rates between 30% and 50% of service revenue are common in spas, salons and massage clinics. Lower rates usually come with a base wage, benefits, or a clinic that supplies the clients, products and equipment; higher rates are more common for experienced practitioners who bring their own clients.

How does a tiered or sliding scale commission work?

The practitioner earns one rate up to a revenue threshold and a higher rate on the revenue above it. With 40% up to $8,000 and 50% above, $12,000 of service revenue pays $3,200 plus $2,000, or $5,200, an effective rate of about 43%.

Do commissioned employees have to earn minimum wage in Canada?

Yes. Under provincial employment standards, an employee paid by commission must still earn at least the minimum wage for each hour worked in a pay period. If commission falls short, the employer makes up the difference. Rules on whether tips can count toward it vary by province; in Ontario they can't.

Should commission be paid on gross revenue or after product cost?

Either is common. Paying on revenue after product cost protects the clinic's margin on expensive products like toxin and filler; paying on gross is simpler and more attractive to staff. The important thing is to state which one in the agreement and apply it consistently.

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