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Commission calculator

Enter your sales and your commission plan to see what you earn. Use a single flat rate, or up to four tiers where each rate applies only to the sales in its band. Add base pay to see your total.

  • Free, no sign-up
  • Works in your browser
  • Updated November 2026

How is commission paid?

$

The sales total your commission is based on, e.g. revenue for the month

Number of tiers

$
%
$
%
$
%
Tier 4: all sales above tier 3
%

Each rate applies only to the sales inside its band, like tax brackets.

$

Optional. Leave empty if you earn commission only.

Commission

$4,450.00

Effective commission rate
5.24%
Base pay
$2,000.00
Total pay (base + commission)
$6,450.00
Rate on your next sale
7%
Commission by tier
BandRateSales in bandCommission
Up to $25,000.003%$25,000.00$750.00
$25,000.00 to $50,000.005%$25,000.00$1,250.00
$50,000.00 to $100,000.007%$35,000.00$2,450.00
Over $100,000.0010%$0.00$0.00

How to use the commission calculator

  1. 1Choose "Flat rate" if one percentage applies to all sales, or "Tiered" if the rate goes up as sales grow.
  2. 2Enter your total sales for the period, such as a month or quarter.
  3. 3For a flat rate, enter the percentage. For tiers, choose how many and enter each tier's upper limit and rate. The last tier covers everything above.
  4. 4Add your base pay for the same period if you have one, or leave it empty.
  5. 5Read your commission, effective rate and total pay. In tiered mode the table shows what each band earned.

Flat rate commission

The simplest plan pays one percentage on every sale. Multiply sales by the rate. $85,000 in sales at 5% pays $4,250.

Check what "sales" means in your plan. Some pay on revenue invoiced, some on cash collected, and some on gross profit rather than sales value. Enter whichever figure your plan uses.

Commission = Sales × Rate ÷ 100

Tiered commission works like tax brackets

In a tiered (or graduated) plan each rate applies only to the sales inside its band. With 3% up to $25,000 and 5% from $25,000 to $50,000, a $40,000 month earns 3% on the first $25,000 and 5% on the next $15,000. Moving into a higher tier never lowers what you earned on earlier sales.

Some plans work differently and pay the higher rate on all sales once a target is reached. That is sometimes called a retroactive or "step" plan. This calculator uses the marginal method; for a step plan, use flat rate mode with the rate you reached.

Commission = Σ (Sales within each tier × Tier rate ÷ 100) Effective rate = Commission ÷ Sales × 100

Base pay plus commission

Many sales roles combine a base salary with commission. Enter base pay for the same period as your sales, so a monthly base for monthly sales. All figures are before tax and other deductions, which depend on where you live.

Total pay = Base pay + Commission

Worked example

A sales rep sells $85,000 in a month on a four-tier plan (3% up to $25,000, 5% up to $50,000, 7% up to $100,000, 10% above) with a $2,000 monthly base.

First $25,000 at 3%$750.00
Next $25,000 at 5%$1,250.00
Next $35,000 at 7%$2,450.00
Above $100,000 at 10%$0.00
Total commission$4,450.00
Effective rate5.24%
Total pay with $2,000 base$6,450.00

The rep earns $4,450 in commission, $200 more than a flat 5% would pay ($4,250), and $6,450 in total before tax.

Frequently asked questions

How do I calculate commission on sales?

Multiply the sales amount by the commission rate and divide by 100. $12,000 in sales at 8% is $12,000 × 8 ÷ 100 = $960. For tiered plans, do this separately for the part of sales in each tier and add the results.

What is a typical sales commission rate?

It varies widely by industry and role. Many plans fall somewhere between 2% and 20%, with lower rates on high-value or repeat sales and higher rates where the base salary is low. Use the rate in your contract or plan document.

Is commission calculated before or after tax?

Commission is normally worked out on the sale amount before sales tax or VAT, and the commission itself is taxable income. This calculator shows pay before income tax and other deductions.

What is the difference between tiered and flat commission?

A flat plan pays one rate on all sales. A tiered plan pays rising rates as sales pass set thresholds, with each rate applied only to the sales in its band, which rewards selling more.

What is an effective commission rate?

Your total commission divided by your total sales. In a tiered plan it sits between the lowest and highest tier rates and shows what you earned on average per unit of sales.
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Last reviewed November 2026. Results are estimates for general information, not financial, tax or legal advice. How we check our tools.