Commission Calculator
Work out sales commission at a flat rate or in tiers, plus base pay.
A commission calculator multiplies the sales amount by the commission rate. At a flat 5%, a $48,500 sale earns $2,425, and with $2,500 of base pay the period's total is $4,925. With tiers of 2% to $10,000, 5% to $25,000 and 8% above, the same sale pays $2,830 when each slice earns its own tier's rate and $3,880 when the whole sale earns the top rate it reaches.
This calculator is for general education. It is not financial advice, not legal advice and not a statement of what an employer owes you. It applies the rates and tiers you enter as either slice or whole-sale tiers and shows pay before tax. Real commission plans can include draws, caps, splits, chargebacks and timing rules this tool leaves out, so your written plan and pay statements are the final word.
Dollars such as 48,500 or 1250.75; rates such as 5 or 2.75. Leave base pay blank for 0.
Commission
$2,425.00
- Sales amount
- $48,500.00
- Effective rate on the whole sale
- 5.00%
- Base pay
- $2,500.00
- Total pay
- $4,925.00
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About the Commission Calculator
Commission is a percentage of what you sell, paid on top of any base pay. A flat plan is the simplest: every dollar of sales earns the same rate, so commission is the sale times the rate. Tiered plans raise the rate as sales climb, and they are written in one of two ways. In a slice plan, each part of the sale earns the rate of the tier it falls in, the way income tax brackets work. With tiers of 2% up to $10,000, 5% up to $25,000 and 8% above that, a $48,500 sale earns 2% on the first $10,000, which is $200, 5% on the next $15,000, which is $750, and 8% on the last $23,500, which is $1,880, for $2,830 in all. In a whole-sale plan, also called a retroactive or step plan, crossing a tier lifts the rate on every dollar, so the same sale earns 8% on all of it, $3,880. The gap between the two widens sharply just above a tier boundary, which is why it is worth reading your plan for the exact wording. The calculator also shows the effective rate, commission divided by the sale, so you can compare offers with different structures on one number.
Frequently asked questions
How do I calculate commission?+
Multiply the sales amount by the rate written as a decimal. At 5%, a $48,500 sale earns $48,500 x 0.05 = $2,425. Add any base pay for the same period to get total pay.
What is the difference between the two tiered options?+
A slice plan pays each part of the sale at the rate of the tier it falls in, like tax brackets. A whole-sale plan pays every dollar at the rate of the highest tier the sale reaches, so crossing a boundary raises the pay on all of it. Your plan document says which one applies.
What is the effective commission rate?+
It is the commission divided by the sales amount, with base pay left out. In a tiered plan it falls at or between the lowest and highest tier rates, which makes it a simple way to compare two plans with different tiers.
Does this include taxes or draws?+
No. It shows commission and base pay before tax. Draws against commission, chargebacks for returns, caps and splits with other reps are left out, so check those terms in your plan before relying on the figure.
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