FREE TOOL — COMMISSION MATH
Roofing Sales Commission Calculator (Draw vs. % of Profit)
Free, instant, no signup. Adjust the inputs and the numbers update live. Every result is a planning estimate.
A draw is an advance against commission, not a bonus. When 'rep take beyond draw' goes negative, your rep earned less than you already paid them — the exact month a poorly-built comp plan starts costing you.
The math, in plain terms.
Start with the profit the deal actually generates, because paying commission on the sticker price rewards discounting and quietly gives away margin. Gross profit per deal is contract price minus true job cost (materials, labor, and allocated overhead). Commission is then a percentage of that gross profit. Example: a $15,000 job costing $9,000 leaves $6,000 of gross profit; at a 40% commission that is $2,400 to the rep per deal, and the percentage is fully adjustable so you can test 30%, 40%, or a tiered plan.
Now layer in the draw. A draw is a fixed advance you pay the rep against commission they are expected to earn — it smooths their income but it is your cash out the door either way. Monthly commission is commission per deal times deals closed, so $2,400 across 4 deals is $9,600; against a $3,000 draw the rep takes $6,600 beyond the draw. Run the slow month too: if the rep closes only one deal, they earn $2,400 in commission but already drew $3,000, so 'rep take beyond draw' shows negative $600 — they are underwater, and you are carrying the gap.
The last number is yours. Company keeps per month is total gross profit minus what you actually pay the rep — the greater of their earned commission or their draw, because the draw is cash out the door whether or not the deals cover it. In the healthy case that is $24,000 of gross profit minus $9,600 in commission, or $14,400 before your fixed overhead; in a slow month it is the draw, not the smaller earned commission, that leaves your account. Use this to design a plan where a productive rep clears their draw comfortably and an unproductive one does not quietly convert your draw into a salary. Change the percentage, the draw, and the deal count together — a comp plan only makes sense when you can see the rep's take and the company's take in the same view.
Questions, answered.
Should I pay commission on contract price or gross profit?
Both models exist in roofing. A percentage of contract price is simple but pays the rep even on thin or discounted jobs. A percentage of gross profit aligns the rep with margin and discourages give-aways. This tool uses the gross-profit basis; to approximate a contract-price plan, set job cost to zero and treat the percentage as a percent of the full contract.
What is a '10/50/50' roofing commission plan?
It is a shorthand for a common storm/retail structure: the company takes a percentage off the top first (often for marketing, overhead, or lead cost), then splits the remaining profit between the company and the rep — for example 10% off the top, then a 50/50 split of what is left. To model that here, subtract the off-the-top amount inside your 'job cost' and set the commission percentage to the rep's share of the remaining profit.
What is the difference between a draw and straight commission?
Straight commission pays only what the rep earns per deal, so income swings with the pipeline. A draw pays a steady advance that is later reconciled against earned commission — great for retention and recruiting, but it means you front cash before the deals close. This calculator shows exactly when a rep's earned commission fails to cover the draw.
Is this financial or tax advice?
No. This is a planning estimate only, not tax, financial, legal, or payroll advice. Commission structures, draw recovery rules, and wage laws vary by state and by agreement. Confirm any comp plan with a qualified accountant or employment attorney before you put it in writing or run payroll.
From spreadsheet to system.
Reconciling every rep's commission and draw against the profit each job actually threw off is the back-office grind The Roofing OS automates so payday math is never a surprise.