Business Finance Calculators
Sales Commission Calculator
Calculate sales commission with a flat rate or tiered rates, the effective rate and total pay including base salary.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Calculating a salesperson's monthly pay
- Designing a commission plan
- Comparing job offers with commission
- Checking a commission statement
About this tool
What the Sales Commission Calculator does
Commission plans pay a percentage of sales, either at one flat rate or in tiers. In a marginal tiered plan, each rate applies only to sales within its band; in a retroactive plan, the highest tier reached applies to all sales. This calculator handles all three.
It also works as a commission calculator.
Formula
- Flat: commission = sales × rate
- Tiered per band: each rate applies only to sales within its band
- Tiered on all sales: the rate of the tier reached applies to the whole amount
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Sales amount | $85,000 |
| Plan type | Tiered, rate per band |
| Flat rate | 5% |
| Tiers | 3 entries |
| Base salary for the period | $3,000 |
| Result | Value |
|---|---|
| Commission | $4,100 |
| Effective commission rate | 4.82% |
| Total pay with base | $7,100 |
How to read the result
Retroactive tiers create big jumps at each threshold, which motivates a final push but can also encourage timing sales across periods. Marginal tiers are smoother.
Check the effective rate across a range of sales levels to make sure the plan pays what you intend for typical performance.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
In a marginal plan, each rate applies only to the sales within its tier, like tax brackets. In a retroactive plan, the rate for the highest tier reached applies to all sales.
It ranges from a few percent on high-value or high-volume sales to 20% or more on services and software.
Usually revenue, but some plans pay on gross profit to discourage heavy discounting.
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