Commission Calculator

The same 10% rate pays very differently depending on the base. On a $40,000 deal with $12,000 of gross profit, 10% of revenue is $4,000 while 10% of gross profit is $1,200. Enter whichever figure your plan actually credits as the sales amount.

Plans that pay on gross profit protect margin: a rep who discounts heavily earns less, because the commissionable base shrinks with the discount.

For a plan paying 5% up to $50,000 and 8% above it, $70,000 of sales splits into two runs: $50,000 at 5% ($2,500) and $20,000 at 8% ($1,600). Add them for $4,100 of commission, an effective rate of about 5.86%.

Running each tier separately keeps every step visible, which makes it easier to check a commission statement line by line.

Confirm three things: the commissionable sales figure matches your credited deals for the period, the rate matches the plan document, and base pay covers the same period. Most disputes come from a mismatched period or a different definition of credited sales, not the arithmetic.

Plans differ on whether commission is paid on booked revenue, invoiced revenue, cash collected, or gross profit. The same 5% rate produces very different pay depending on which base is used.

Timing matters too. Commission paid on collection can lag the booking by months, and clawbacks may apply to refunds or cancellations. Enter only the credited amount your plan actually pays on.

On a straight (commission-only) plan, pay is simply sales × rate. Leave base pay blank: $40,000 of sales at 8% earns $3,200, and that is the full gross pay for the period.

On a salary-plus-commission plan, a fixed base is paid regardless of sales and commission is added on top. With a $2,500 base, $40,000 of sales at 4% adds $1,600, for $4,100 total. The lower rate is typical because the base carries part of the pay.

Comparing the two examples shows the trade-off: the commission-only plan pays more at $40,000 of sales, but nothing at zero sales, while the salaried plan guarantees $2,500. The two plans pay the same when 8% × sales = $2,500 + 4% × sales, which happens at $62,500 of sales; above that, the commission-only plan pays more.

It applies one flat rate to the whole sales amount. Tiered or graduated plans, accelerators above quota, thresholds, caps, draws against commission, split credit, and clawbacks are not calculated. For a tiered plan, run each tier with its own sales amount and rate, then add the results.

Rates are not capped at 100%. Most rates are far lower, but plans that pay on gross profit or a small credited base can legitimately exceed it, so the calculator accepts them. A 0% rate is valid and returns zero commission.

All figures are gross — before income tax, payroll deductions, or benefits.