Pay & compensation
Sales Commission Calculator
Sales compensation plans reward accelerating performance with graduated tiers. Model a flat percentage or custom marginal tiers with optional base salary.
Commission earned
US$35,000
effective rate 7.00%
- Base salary
- US$0
- Total earnings
- US$35,000
How the calculator works
Simple commission calculates a flat percentage across all revenue. Tiered commission is marginal: each percentage rate applies strictly to sales within that tier window.
Formula
Flat commission = Total sales × Commission %
Tiered commission = Σ (Sales in tier band × Tier rate %)
When this is useful
- Auditing commission statements against contractual accelerator agreements
- Forecasting OTE (on-target earnings) across deal closure quotas
- Comparing high-base low-commission versus low-base high-commission offers
Benchmark Figures
100,000250,000500,0001,000,000
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Frequently asked questions
What is marginal tiered commission?
Marginal commission operates like tax brackets. For example, 5% on the first $100k and 10% thereafter means a $150k sale earns $5k on the first band and $5k on the second band ($10k total).