Calculate commission
The example tiers start with 5% on the first 10,000 and 8% on all remaining sales. Every tier is editable.
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Sales Commission Calculator
Use one commission rate or build progressive tiers that apply different rates to different portions of sales.
Flat rate vs tiered commission
Both methods pay a percentage of sales. They differ in what that percentage applies to.
The formulas
- Flat commission = Sales amount × Commission rate
- Tiered commission = (Sales in tier 1 × Rate 1) + (Sales in tier 2 × Rate 2) + …
With 5% up to 10,000 and 8% above it, sales of 12,000 pay 10,000 × 5% = 500 plus 2,000 × 8% = 160, for a total of 660. The effective rate is 5.5%.
Progressive, not retroactive
This calculator applies each rate only to the sales inside its own tier, in the same way income tax bands work. A higher tier rate does not re-price the sales that already earned a lower rate.
Retroactive plans — where reaching a threshold changes the rate on all sales — are a different structure. To estimate one, set a single flat rate equal to the rate that would apply to the total.
What the result does not include
The output is commission only. Base salary, bonuses, draw against commission, clawbacks and tax withholding are separate, and a commission plan should state each of them before anyone relies on the number.
Related calculators
Commission is usually a share of revenue, so the margin on the deal still matters: check what is left after cost with the profit margin calculator, or price the deal from a target margin with the product pricing calculator.
Questions
What is the difference between flat and tiered commission?
A flat plan pays one rate on every sale. A tiered plan pays different rates on different portions of sales, usually rising as the total grows.
Is tiered commission calculated on all sales at the top rate?
Not here. Each tier's rate applies only to the sales between its own limits, so the total is the sum of the portions rather than the whole amount at one rate.
Can I use my own tier limits?
Yes. Every limit and rate is editable, and the last tier can be left without a limit so it covers all remaining sales.