Commission Calculator

How to use the commission calculator

1. Fill in the fields — they start with a worked example.
2. Read the answer, and the arithmetic shown beneath it.
3. Copy the results, or adjust the inputs to compare scenarios.

About this tool

Commission plans usually have two rates: a standard percentage up to target, and a higher one beyond it. That accelerator is the part worth modelling, because it changes what the last sale of a quarter is worth.

Enter the base rate, the target, and the accelerated rate to see where earnings actually land. Where a plan is a flat percentage, set both rates the same and ignore the target.

Commission is paid on whatever your plan defines as the base — sometimes revenue, sometimes gross profit. Those differ enormously on discounted deals, so check which one your plan means before trusting any projection.

Common uses

• Working out what a quarter's sales will pay.
• Comparing two compensation plans.
• Checking a commission statement.

Frequently asked questions

Is commission on revenue or profit?

It depends on your plan. Revenue-based commission pays the same on a heavily discounted deal; profit-based does not. Check which yours uses.

What is an accelerator?

A higher commission rate on sales above target, used to reward exceeding quota rather than just meeting it.