Money Math · Lesson Plan

Calculating Commission

A commission is money someone earns when they sell something — usually a percent of the sale. Salespeople, real estate agents, and mortgage brokers often work on commission. In this lesson students learn to calculate a commission by converting a percent to a decimal and multiplying it by the sale amount, then practice with real-world sales scenarios.

Grades 5–8 Lesson Plan 30–45 minutes Free Lesson

Calculating commission lesson illustration

For Teachers

Lesson at a glance

Topic: Money Math
Grade Level: Grades 5–8
Resource Type: Lesson + Worksheet
Estimated Time: 30–45 minutes
Format: Lesson + worksheet + answer key
Materials: Printable lesson, worksheet, answer key, calculator

What Students Learn

Learning objectives

Explain what a commission is and who earns one
Convert a percent to a decimal
Calculate a commission as a percent of a sale
Solve multi-step commission problems, including a base salary plus commission
Apply commission math to real estate and sales scenarios

Materials

What you’ll need

Printed copies of the lesson and worksheet (one per student)
Calculators
Pencils
Whiteboard or projector for worked examples

Key Terms

Vocabulary

Commission: Money someone is paid for making a sale, usually a percent of the sale amount.
Percent: A part out of one hundred.
Decimal: Another way to write a part of a whole; a percent divided by 100.
Sale price: The amount an item or property sells for.
Base salary: A fixed amount earned in addition to any commission.
Profit: What is left after costs and payouts are subtracted.

For Teachers

Lesson plan

Estimated time: one 30–45 minute class period.

Lesson sequence

Introduction (5 min). Ask students who earns money “on commission.” Introduce commission as a percent of a sale.
Teach the method (10 min). Work the real-estate example from the lesson: convert the percent to a decimal, then multiply by the sale price. Show how half a percent changes the payout.
Worksheet (15 min). Students complete the 10 commission problems, including a base-plus-commission case and a multi-step total-payout question.
Review (8 min). Check answers with the answer key and discuss why a small percentage change matters on a large sale.

Assessment

Assess the completed worksheet against the included answer key.

Discussion

Discussion questions

What is a commission, and what kinds of jobs pay one?
Why do you convert a percent to a decimal before multiplying?
Why does half a percentage point make such a big difference on an expensive home?
How would you calculate pay for a job that offers a base salary plus commission?
Would you rather be paid a fixed salary or work on commission? Why?

Printable Lesson, Worksheet & Answer Key