OneTaskBy Tim King · Updated
Commission Calculator
Tiered Sales Commission Rates and Total Pay Including Any Base Salary
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How the Commission Calculator works
This commission calculator works out what a sale or a month of sales earns. Enter the sales and the commission rate for a flat commission, or add a threshold and a higher rate above it for a tiered plan. It returns the commission, the effective rate across all sales and total pay including any base.
Commission calculator formula
A flat commission is sales times the rate:
Commission = sales × rate ÷ 100
With a tier, the lower rate applies up to the threshold and the higher rate applies only to the part above it:
Commission = threshold × rate + (sales − threshold) × upper rate
The effective rate is the commission divided by sales, which is the single rate that would have paid the same amount.
Worked example: a tiered plan
Sales of 50,000 earn 5% up to 30,000 and 8% above it. The first tier pays 30,000 × 0.05 = 1,500 and the second pays 20,000 × 0.08 = 1,600, for a commission of 3,100. That is an effective rate of 6.20%. With a base of 2,000, total pay is 5,100.
Worked example: a flat rate
Leave the threshold blank and sales of 18,500 at 6% earn 18,500 × 0.06 = 1,110. The effective rate equals the flat rate.
Commission calculator reference table
Commission at 3%, 5% and 10% on sales from 5,000 to 100,000.
| Sales | 3% | 5% | 10% |
|---|---|---|---|
| 5,000 | 150 | 250 | 500 |
| 10,000 | 300 | 500 | 1,000 |
| 15,000 | 450 | 750 | 1,500 |
| 20,000 | 600 | 1,000 | 2,000 |
| 25,000 | 750 | 1,250 | 2,500 |
| 30,000 | 900 | 1,500 | 3,000 |
| 35,000 | 1,050 | 1,750 | 3,500 |
| 40,000 | 1,200 | 2,000 | 4,000 |
| 45,000 | 1,350 | 2,250 | 4,500 |
| 50,000 | 1,500 | 2,500 | 5,000 |
| 55,000 | 1,650 | 2,750 | 5,500 |
| 60,000 | 1,800 | 3,000 | 6,000 |
| 65,000 | 1,950 | 3,250 | 6,500 |
| 70,000 | 2,100 | 3,500 | 7,000 |
| 75,000 | 2,250 | 3,750 | 7,500 |
| 80,000 | 2,400 | 4,000 | 8,000 |
| 85,000 | 2,550 | 4,250 | 8,500 |
| 90,000 | 2,700 | 4,500 | 9,000 |
| 95,000 | 2,850 | 4,750 | 9,500 |
| 100,000 | 3,000 | 5,000 | 10,000 |
Quick answers
- 5% commission on 10,000 is 500.
- 10% commission on 25,000 is 2,500.
- 3% commission on a 600,000 sale is 18,000.
- 2,000 commission on 40,000 in sales is a 5% rate.
- A higher tier only lifts the rate on sales above the threshold, never on all sales.
- Divide a commission target by the rate to see how many sales you need: 2,000 at 5% takes 40,000 of sales.
FAQ
What is a commission rate?
It is the share of each sale paid to the salesperson, written as a percentage. A 7% rate pays 7.00 for every 100.00 sold. Some plans pay a higher rate once you pass a target.
How does tiered commission work?
Each rate applies only to the sales inside its band, like steps. Crossing a threshold does not re-rate the sales below it, so there is no drop in pay from selling slightly more.
Is commission calculated on revenue or profit?
It depends on the plan. Most plans pay on sales revenue, but some pay on gross profit. Enter whichever figure your plan uses as sales.
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