CalcArcade.

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

Result

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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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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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.