Sales Commission Calculator
Free sales commission calculator for flat, tiered, and profit-based plans. Estimate payouts, effective rates, and net after draw with clear breakdowns.
Sales Commission Calculator
Enter your details below to calculate
- $25,000.00 × 10% = $2,500.00
How to Use Commission Calculator
Enter sales amount
Add your total eligible sales for the period (month, quarter, or year).
Choose the commission structure
Select flat, tiered, or profit-based. For tiered, add thresholds and rates in order.
Optional: add draw or cost
If your plan includes a recoverable draw, enter the draw amount. For profit-based plans, enter cost.
Review breakdown and effective rate
See gross commission, effective rate, and net after draw. Adjust inputs to test scenarios.
Key Features
Fast commission calculator calculations
Clear inputs and results
Mobile-friendly, privacy-first
Free to use, no signup
Complete Guide: Sales Commission Calculator
Sales compensation plans vary widely by industry and company, but the core math is consistent: a commission is a percentage applied to revenue or profit, sometimes with thresholds, tiers, accelerators, and draws. This calculator helps you estimate payouts for three of the most common structures—flat rate, tiered, and profit-based—so you can forecast earnings, compare plan designs, and avoid surprises on payday.
How commission plans typically work
- Flat rate (revenue-based): A single percentage applies to all eligible sales. Example: 10% of $25,000 = $2,500.
- Tiered rates: Higher rates unlock once you cross thresholds. Example: 5% to $10,000, 10% to $25,000, 15% above that.
- Profit-based (margin): Commission is paid on gross profit (revenue minus cost), not total revenue. Example: Profit of $10,000 × 25% = $2,500.
- Draws: A recoverable advance against future commissions. If your commission is less than the draw this period, the shortfall typically carries forward.
- Accelerators: After quota, the rate increases (e.g., 1.2× or 1.5×). In practice this behaves like a tier above quota.
Key formulas
Flat rate: commission = sales × (rate ÷ 100)
Tiered: sum of each tier segment × (tier rate ÷ 100)
Profit-based: commission = max(sales − cost, 0) × (profit rate ÷ 100)
Effective rate: commission ÷ sales × 100
Worked examples
Sales $8,000 at 5% = $400. Effective rate = 5%.
First $25,000 at 7% = $1,750; next $25,000 at 10% = $2,500; total on $50,000 = $4,250.
Revenue $200,000, cost $140,000, profit $60,000 at 20% = $12,000.
Flat vs tiered vs profit-based—when each makes sense
- Flat rate: Simple, predictable payouts. Great for quick-moving retail or transactional sales.
- Tiered: Encourages overachievement and end-of-quarter pushes. Common in B2B and SaaS with quotas.
- Profit-based: Protects margin when discounts vary. Common for hardware, services bundles, or custom deals.
Draws, caps, and clawbacks
A recoverable draw is an advance that gets repaid from future commissions. If you take a $2,000 draw and earn $1,500, you'll usually carry a $500 balance into the next period. Plans may also include caps (maximum payout), minimum performance floors, and clawbacks for churned deals. Always check plan documents to understand these protections and obligations.
Tips to get accurate estimates
- Use realistic sales amounts and discounting assumptions.
- For tiered plans, include an open-ended final tier if overachievement is possible.
- For profit-based plans, estimate cost carefully—small errors can swing payouts.
- Add your draw to see net payout and plan cash flow through slower months.
Comparing compensation plans? Try our Break-Even Calculator to see how many deals you need to cover fixed expenses, or explore the Budget Calculator to plan monthly cash flow.
About the Author
Jurica Šinko
Finance Expert, CPA, MBA with 15+ years in corporate finance and investment management
Connect with JuricaFrequently Asked Questions
What's the difference between tiered and flat commission?
Flat commission pays one rate on all sales. Tiered commission uses thresholds—once you cross a level, a higher rate applies to the portion above that level (or sometimes retroactively, depending on the plan).
How do recoverable draws affect my paycheck?
A recoverable draw is an advance against future commissions. If your commission doesn't cover the draw this period, the difference typically carries forward and is repaid from future earnings.
Should I calculate commission on revenue or profit?
Revenue-based plans are simpler and common for transactional sales. Profit-based plans protect margins when discounts vary or deals have material costs. Follow your company's plan rules.
Can accelerators be modeled here?
Yes. Use the tiered structure and set your quota as a threshold with a higher rate above it (e.g., 1.2× or 1.5× the base rate).
What about caps, minimums, or clawbacks?
Some plans cap payouts, require a minimum performance floor, or include clawbacks for cancellations or churn. This calculator shows estimates; always confirm details in your plan documents.
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