Work out flat or tiered sales commission and total pay.
Calculated instantly in your browser.
How is sales commission calculated?
Flat commission = sales × rate, so every dollar pays the same percentage. Tiered (accelerated) commission = (amount up to the threshold × rate 1) + (amount above the threshold × rate 2), and total pay = base + commission. For example, a $120,000 sale paying 5% up to $100,000 and 8% above earns $5,000 + $1,600 = $6,600.
Understanding your result
Flat commission pays the same percentage on every dollar. Tiered (accelerated) plans pay a higher rate once a threshold is passed, which rewards exceeding a quota. The effective rate is total commission divided by the sale.
Formula and method
Flat: commission = sales × rate. Tiered: commission = (amount up to the threshold × rate 1) + (amount above the threshold × rate 2). Total pay = base + commission.
Assumptions and limitations
This works out commission from the rates, thresholds and base you enter, so results are only as accurate as those inputs. It does not model caps, clawbacks, splits, chargebacks on returns, or tax and withholding on the pay. Use it to compare structures, not as a statement of guaranteed earnings.
Worked example
A $120,000 sale paying 5% up to $100,000 and 8% above earns $5,000 + $1,600 = $6,600.
How to use this tool
- Choose flat or tiered.
- Enter the sales amount and rate(s).
- Add any base salary to see total pay.
Common mistakes to avoid
- Applying the higher tier rate to the whole sale instead of just the amount above the threshold.
- Forgetting to include a draw against commission.
About the Commission Calculator
The Commission Calculator works out how much commission a sale earns. Use a flat rate, or a tiered structure where the rate increases above a threshold, and add a base salary or draw to see total pay.
Who should use this tool
Salespeople, real-estate agents, managers and anyone on a commission plan.
Benefits
- Flat or tiered commission in one tool.
- Adds base salary or draw for total pay.
- Shows the effective commission rate.
- Breaks tiered pay into each band.
Practical use cases
- Estimating take-home on a big deal.
- Modelling an accelerator above quota.
- Checking a real-estate commission split.
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Frequently asked questions
How is tiered commission calculated?
The first rate applies up to the threshold; the second, higher rate applies only to the portion of the sale above it.
What is a draw against commission?
A draw is an advance paid as a base, later offset against the commission earned. Enter it as the base to see total pay.
Does this include tax on commission?
No. The figure shown is gross commission plus any base you enter, before income tax, payroll deductions or withholding. Actual take-home pay will be lower and depends on your local tax rules. It also excludes caps, clawbacks and splits unless you adjust the inputs yourself.