Commission Calculator
Work out earnings from a base salary plus tiered commission.
Your numbers
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Your results
Commission
Commission
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Total pay
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Effective commission rate
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Commission Calculator by TheCalcTools
How the Commission Calculator works
Enter the sales you closed and your quota.
Enter the commission rate below and above the quota.
Commission is each slice of sales multiplied by its rate; base pay is added on top.
The formula
Commission = min(sales, quota) × rate₁ + max(sales − quota, 0) × rate₂Total = base + commission
Worked example
Using the default values shown in the calculator:
| Sales amount | $80000 |
|---|---|
| Quota | $50000 |
| Commission rate up to quota | 5 % |
| Commission rate above quota | 8 % |
| Base pay for the period | $3000 |
- Up to quota: $50,000 × 5% = $2,500.
- Above quota: $30,000 × 8% = $2,400, so commission = $4,900.00.
- Total pay with base = $7,900.00.
Result:
| Commission | $4,900.00 |
|---|---|
| Total pay | $7,900.00 |
| Effective commission rate | 6.12% |
Frequently asked questions
What is an accelerator?
A higher commission rate paid on sales above quota, which rewards over-performance.
Is commission paid on revenue or profit?
Plans differ. Check your agreement, as some pay on revenue, others on gross margin.
Sources and further reading
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This calculator gives estimates for information only. Check important results independently before you rely on them. See our disclaimer.