Free tool
Sales commission calculator
Enter your sales and your commission rate. Add a higher rate above a threshold or a base salary if your plan has them.
Sales and rate
Tier (optional)
Prefer to talk it through? Take the free books check or contact us.
How it works
How it works
A flat plan multiplies sales by the rate. A tiered plan applies the first rate to sales up to the threshold and the second rate to everything above it. Base pay, if any, is added to get total pay.
FAQ
About this calculator
How is sales commission calculated?
Multiply sales by the commission rate. With a flat 5% rate, $50,000 in sales earns $2,500.
What is a tiered commission?
A higher rate applies to sales above a threshold. The calculator charges the first rate up to the threshold and the second rate on the rest.
Does my plan work this way?
Plans differ on what counts as a sale, caps, clawbacks and when commission is paid. Use this as an estimate and check your written plan.
Is anything saved?
No. The math runs in your browser and nothing you enter is sent to us.
Read how to calculate sales commission, then check margins with the profit margin calculator. More free tools: Short-term rental nightly rate for a profit target calculator, Menu item food cost percentage calculator, Overtime pay calculator, or see all free tools.
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Commission examples
Flat, tiered and base pay
A tiered plan pays 5% up to $40,000 and 8% on sales above that. On $65,000 of sales, the first $40,000 earns $2,000 and the remaining $25,000 earns $2,000, so commission is $4,000.00. With a $3,000 base, total pay is $7,000.00. The effective rate is 4,000 / 65,000 = 6.15%.
Tiered or retroactive?
Some plans apply the higher rate to every dollar once the threshold is passed. On the same $65,000, 8% of all sales is $5,200.00, which is $1,200.00 more than the tiered result. Read your plan: the calculator here uses the tiered method.
Commission on profit
If commission is paid on gross profit and a deal brings $20,000 of gross profit at a 10% rate, the commission is $2,000.00. Enter gross profit in the sales box to estimate it.
Work backwards
To earn $6,000 at a flat 5% you need $6,000 / 0.05 = $120,000 in sales.