Commission Calculator
Enter your sales and your commission rate. If your plan pays a higher rate above a quota, add the quota and that rate. Add a base salary to see total pay.
Your numbers
Estimate for information only, not professional advice. Last reviewed .
How we calculate it
Sales up to the quota earn the base rate, and only the sales above the quota earn the higher rate. Commission = base rate × sales up to quota + higher rate × sales above quota. With no quota, the base rate applies to all sales.
With 50,000 of sales, a 5% rate, a 40,000 quota and 8% above it, commission is 2,000 + 800 = 2,800. That is an effective rate of 5.6%, and with a 3,000 base salary the total pay is 5,800.
Assumptions and limits
- This assumes the higher rate applies only to sales above the quota. Some plans pay the higher rate on all sales once the quota is met, so check your plan.
- Tiers, caps, draws and clawbacks are not included.
- Your pay is before tax and deductions.
Frequently asked questions
How is sales commission calculated?
Multiply sales by the commission rate. If the plan has a quota with a higher rate, apply the base rate up to the quota and the higher rate to the amount above it.
What is the effective commission rate?
It is your total commission divided by your total sales. When part of your sales earns a higher rate, the effective rate falls between the base rate and the higher rate.
Does the higher rate apply to all sales or only the extra?
It depends on your plan. This calculator applies the higher rate only to the sales above the quota. If your plan pays the higher rate on all sales once you pass the quota, this calculator does not model it, so check your plan.
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- Profit Margin CalculatorEnter what a product costs you and what you sell it for to see your profit, profit margin and markup.
- Markup CalculatorEnter your cost and the markup you want to add to get the selling price, profit per unit and the margin that markup produces.
- Salary to Hourly CalculatorEnter your yearly salary, the hours you work in a week and the weeks you work in a year.
Worked example (a fixed example using the starting numbers, it does not change as you type)
Inputs: Sales for the period ($) = 50000; Commission rate (%) = 5; Quota ($, optional) = 40000; Higher rate above the quota (%, optional) = 8; Base salary for the period ($, optional) = 3000.
- Commission $2,800.00
- Commission at the base rate $2,000.00
- Commission above quota $800.00
- Effective commission rate 5.6%
- Total pay with base salary $5,800.00
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