Commission Calculator
Estimate commissions for flat and tiered structures based on sales volume, rate, and base pay options.
Total Commission: —
Commission Tiers
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Total Commission: —
Understanding Commission
A commission is income directly tied to sales results. It rewards performance by paying a percentage of each sale. Some professionals earn only commission, while others combine it with salary or bonuses.
Types of Commission Structures
Commission plans vary by business. This calculator models three main types:
- Commission-only
- Base pay plus commission
- Tiered (progressive) commission
Commission-Only
Income comes entirely from sales. Example: $500,000 × 3% = $15,000. Formula: Sale × Rate = Commission
Base Pay Plus Commission
Combines a fixed base with sales percentage. Example: $500 + (25,000 × 1.5%) = $875.
Tiered Commission
Rates increase at sales milestones. Example: 3% up to $20,000, 5% on the next $5,000, and 10% above $25,000. Formula: (t₁ × c₁) + (t₂ − t₁) × c₂ + … + (Sales − tₙ₋₁) × cₙ