How to use it
- Type the Sales in the period you want to check.
- Choose a Commission type: a flat rate on all sales, or tiers. For a flat rate, type the Commission rate; for tiers, type each band limit and rate.
- Add a Base salary if you get one, then read Commission, Total pay (base salary plus commission) and Commission by band.
How commission is calculated
Commission is variable pay for the sales a person makes. With a flat rate, the rate applies to every sale. With tiers, each band of sales earns its own rate, as income-tax bands work: the sales in the first band earn the first rate, the sales in the next band earn the second rate, and the sales above the second limit earn the third rate. Each band is worked out separately and the results are added.
Flat rate: commission = sales × rate ÷ 100
Tiers: commission = first band sales × first rate ÷ 100 + second band sales × second rate ÷ 100 + sales above the second limit × third rate ÷ 100
Total pay = base salary + commission
Share of sales = commission ÷ sales × 100Where the rates and bands come from
The rates, the band limits and the rule for which sales count are set by the sales plan or the employment contract. Commission is defined as variable pay for products sold, which may be a share of revenue, of profit or a bonus (see the commission article on English Wikipedia). Check your own plan before you rely on the result.
What this calculator does not include
- Plans that pay one rate on all sales once a band is reached (accelerators), or that pay nothing below a minimum target (a cliff).
- Caps, refunds for returned goods, shared commission and commission on costs of sales.
- Tax and deductions. All figures are gross.
Worked example: 45,000 of sales in three bands
The first 10,000 earns 3%: 300.00. The next 20,000, from 10,000 to 30,000, earns 5%: 1,000.00. The last 15,000 earns 7%: 1,050.00. The commission is 2,350.00, which is 5.22% of the sales.
| Band | Sales | Rate | Commission |
|---|---|---|---|
| First band | 10,000.00 | 3% | 300.00 |
| Second band | 20,000.00 | 5% | 1,000.00 |
| Above the second band | 15,000.00 | 7% | 1,050.00 |
| Total | 45,000.00 | 2,350.00 |
Frequently asked questions
How is a flat commission calculated?
Multiply the sales by the commission rate and divide by 100. A sale of 20,000 at 8% earns 1,600. The calculator shows the same figure in the commission table, next to the share of sales.
What is the difference between tiers and an accelerator?
With tiers, each band of sales earns its own rate, so only the sales above a limit earn the higher rate. An accelerator pays the higher rate on all sales once a level is reached. This calculator works out tiers, not accelerators.
Does the base salary change the commission?
No. The base salary is added to the commission to give the total pay, but the commission is worked out from the sales alone. Enter the base salary to see the total.
Is commission taxed?
The commission figure is gross, before tax and deductions. Tax and social contributions depend on your country and your employment status, and they are not part of this calculation.
Why is my commission different from the figure in my plan?
The plan may count sales differently, cap the commission, use another band rule, or pay on revenue after returns and fees. Compare the plan's definitions with the inputs before you use the result.
Sources
Figures and text last checked on Thursday, November 12, 2026.