How to use the sales commission calculator
Commission plans rarely stop at one rate. Most raise the percentage as a rep clears higher volumes, which makes the payout hard to check in your head. This calculator takes two thresholds and three rates, shows how much of your sales fell in each band, and adds the bands into a total. Because the working is laid out in a table, it doubles as a way to verify a commission statement.
The tiers are marginal. The top rate is not applied to all of your sales once you pass a threshold. Sales up to the tier 1 threshold earn the tier 1 rate, the portion between the two thresholds earns the tier 2 rate, and only the amount at or above the tier 2 threshold earns the tier 3 rate.
Rates and thresholds differ from plan to plan and from rep to rep, so nothing is preset here and every figure comes from you. If returns or cancellations reduce what counts, put them in the deductions field and the calculation starts from the reduced amount. Add a base salary and total pay appears alongside, which is the number most people actually want at the end of a month.
Frequently asked questions
Tier 1 covers $0 up to but not including the tier 1 threshold, tier 2 runs from the tier 1 threshold up to but not including the tier 2 threshold, and tier 3 starts at the tier 2 threshold. Sales landing exactly on a threshold take the higher tier, and the results table states these ranges.
No. This calculator only does marginal tiers, where each rate applies to the portion inside its own band. To model a single flat rate, set the tier 1 threshold above your sales figure and enter only the tier 1 rate.