Commission Calculator

Calculate sales commission at a flat rate or with tiers, and your total pay with a base salary

Sales and Rates

$
$

Salary for the same period

$
%
$
%
Above $100,000
%

Commission

$4,950.00

5.82% of $85,000 in sales

Commission

$4,950.00

Effective rate

5.82%

commission ÷ sales

Base pay

$0.00

Total pay

$4,950.00

Commission at different sales levels

Your sales are marked

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Commission by tier

$4,950.00 in total

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Commission by Tier

TierSales RangeRateCommission
Tier 1$0 – $50,0005.00%$2,500.00
Tier 2$50,000 – $100,0007.00%$2,450.00
Tier 3Above $100,00010.00%$0.00

Each slice of sales earns its own tier's rate, like tax brackets.

Commission Structures

A flat commission pays the same rate on every sale. Tiered plans raise the rate as sales grow. Marginal tiers work like tax brackets: only sales above each threshold earn the higher rate. Whole-amount (retroactive) tiers pay the rate of the highest tier reached on all sales, so crossing a threshold boosts the whole commission.

The Formulas

Flat: commission = sales × rate

Marginal: Σ (sales in tier × tier rate)

Whole: sales × rate of the tier reached

Effective rate = commission ÷ sales.

Understanding Your Plan

  • •Ask whether tiers are marginal or retroactive
  • •Check whether commission is paid on sales booked or on payment received
  • •Look for caps, draws and clawbacks in the plan document
  • •Compare total pay, not just the commission rate, between offers
  • •Track your effective rate as you approach each tier

Frequently Asked Questions