Commission calculator
Enter the sales amount and a commission rate, or switch to tiers where the rate rises as sales grow. In tiered mode each rate is paid only on the sales that fall inside its tier.
Runs in your browser: nothing you enter is sent anywhere.
How to use it
- Choose flat or tiered.
- Enter the sales amount.
- For a flat plan enter one rate. For tiers enter where tier 1 and tier 2 end and a rate for each of the three tiers.
- Flat: commission = sales × rate ÷ 100
- Tiered: for each tier, (sales inside the tier) × (tier rate) ÷ 100, added up
Worked example
Tiers: 3% up to 20,000; 5% up to 50,000; 8% above. Sales are 80,000.
- Tier 1: 20,000 × 3% = 600
- Tier 2: 30,000 × 5% = 1,500
- Tier 3: 30,000 × 8% = 2,400
Commission is 4,500 and the effective rate is 5.625%.
Tips
- Leave a tier rate the same as the next one if your plan has fewer than three tiers.
- Check your contract: some plans pay on profit or on collected payments rather than on sales.
Frequently asked questions
How is flat commission calculated?
Commission = sales × rate ÷ 100. Sales of 50,000 at 5% earn 2,500.
How does tiered (graduated) commission work?
Each rate applies only to the part of sales inside its tier, like income-tax brackets. With 3% up to 20,000, 5% from 20,000 to 50,000 and 8% above, sales of 80,000 earn 600 + 1,500 + 2,400 = 4,500.
What is the effective rate?
Total commission divided by total sales. In the tiered example, 4,500 ÷ 80,000 = 5.625%, lower than the top rate of 8% because the first sales earned less.
Is this different from a plan where hitting a target raises the rate on all sales?
Yes. Some plans pay the higher rate on every sale once a threshold is passed (a cliff). This calculator pays tier rates only on the slice above each limit, so enter a flat rate if your plan pays the whole amount at one rate.