You can choose how your commissions are calculated under Settings → Commissions.
Housecall Pro supports two calculation types: Revenue-based and Gross Profit-based. Understanding the difference helps you choose the method that best fits your business.
⚙️ How to Select Your Commission Type
Go to Settings → Commissions
Under Calculation Type, choose either:
Revenue-based
Gross Profit-based
Click Save
💡 Your selection will determine how commission amounts are automatically calculated on jobs and reports.
💰 Revenue-Based Commissions
Definition: Revenue-based commissions are calculated on the total job revenue — the amount billed to your customer before any costs are subtracted.
Example:
Job revenue: $2,000
Technician’s commission rate: 10%
Commission earned: $200
When to use it:
You want a simple commission structure.
You pay based on sales volume or total job value.
How it works in Housecall Pro:
Commissions can be calculated by line item (specific services or products) or by manual split.
You can also split total job revenue between multiple team members using manual split commissions (for example, 50/50 or 70/30 splits).
This is best for businesses that don’t need to factor in material or labor costs.
🧮 Gross Profit-Based Commissions
Definition: Gross profit commissions are calculated after deducting your job’s unit and labor costs. The commission is based on the profit remaining after those expenses.
Formula: Gross Profit = Revenue – (Material Costs + Labor Costs)
Example:
Job revenue: $2,000
Material cost: $500
Labor cost: $300
Gross profit: $1,200
Technician’s commission rate: 10%
Commission earned: $120
When to use it:
You want to reward profitability instead of total sales.
You have jobs with different cost margins.
How it works in Housecall Pro:
When you select Gross Profit, the system automatically factors in your recorded material and labor costs.
You can split the gross profit between multiple team members using manual split commissions (e.g., 50/50, 70/30, or custom splits).
This ensures commissions align with actual profit earned on the job.
🔢 Choosing the Right Option
Use Case | Recommended Method |
Paying on total job value | Revenue-based |
Rewarding profit efficiency | Gross profit-based |
Paying on specific services or materials | Revenue-based (line item) |
Splitting commissions across team members | Both methods support manual split |
Balancing between selling and performing techs | Gross profit with manual split |
✅ Key Takeaways
Choose your calculation type under Settings → Commissions.
Revenue-based = commissions on total job revenue.
Gross profit-based = commissions on profit after costs.
Gross profit includes both unit/material costs and labor costs.
Both methods support manual splits for sharing commissions between team members.
Need help or have questions?
We're here for you! Chat with Support using the Blue Chat Bubble in your Housecall Pro account, or give us a call at (858) 842-5746.