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
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
Commission by tier
$4,950.00 in total
Commission by Tier
| Tier | Sales Range | Rate | Commission |
|---|---|---|---|
| Tier 1 | $0 – $50,000 | 5.00% | $2,500.00 |
| Tier 2 | $50,000 – $100,000 | 7.00% | $2,450.00 |
| Tier 3 | Above $100,000 | 10.00% | $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