Commission Calculator
Commission Inputs
Results
| Sales Amount | — |
|---|---|
| Commission Earned | — |
| Base Salary | — |
| Total Earnings | — |
| Effective Commission Rate | — |
How to Use This Commission Calculator
Commission plans love fine print—base rate up to a quota, higher rate above it, plus a draw against base salary. Before celebrating a big month, I run the numbers here to see what actually hits the paycheck and what the effective rate really was.
- Enter sales amount and commission rate. Total revenue closed and your base commission percentage.
- Enter base salary if applicable. Fixed pay component, or leave as zero for commission-only roles.
- Optionally enable tiered commission. Check the box and enter threshold and higher rate for sales above the cutoff.
- Press Calculate. Review commission earned, base salary, total earnings, and effective commission rate.
Reverse-engineer pricing margins with the Margin Calculator, or estimate take-home after a major sale with the Income Tax Calculator.
Commission Formulas and Practical Applications
Flat commission is straightforward; tiered plans pay one rate up to a threshold and a higher rate on the excess. Effective rate blends both tiers into a single percentage of total sales.
Flat commission
Commission = Sales × (Rate ÷ 100)
Total Earnings = Base Salary + Commission
$100,000 in sales at 5% with a $3,000 base yields $5,000 commission and $8,000 total earnings.
Tiered commission
Commission = Threshold × Base Rate + (Sales − Threshold) × Tier Rate
$100,000 sales, 5% base to $50,000, 8% above: commission = $2,500 + $4,000 = $6,500.
Effective rate
Effective Rate = Commission ÷ Sales × 100
That tiered example has an effective rate of 6.5%—not 5% or 8% alone.
Frequently Asked Questions
How is commission calculated?
Commission equals sales amount times commission rate divided by 100. Total earnings add base salary when entered.
How does tiered commission work?
Sales up to the threshold earn the base rate. Sales above the threshold earn the higher tier rate on the excess only.
What is effective commission rate?
Effective rate equals total commission divided by sales amount times 100. It reflects the blended rate when tiers apply.
Is base salary required?
No. Leave base salary at zero for commission-only compensation.
Does this include tax withholding?
No. Results are gross earnings before taxes, clawbacks, or employer-specific adjustments.