Sales Commission Calculator
Flat, tiered and threshold-based commission, with on-target earnings and effective rate.
Formula
commission = Σ (sales in tier × tier rate)
Tips
- Accelerators reward over-performance and are usually cheaper than raising the base rate, because they only pay out on the sales you most want.
- A common split is 50/50 base to variable for new business roles, and 70/30 or 80/20 for account management.
- Commission on revenue can push a team towards discounting. Paying on gross profit removes that incentive.
Frequently asked questions
Should commission be paid on revenue or profit?
Profit aligns the seller with the business, since discounting then costs them directly. Revenue is simpler to administer and easier for sellers to forecast. Many companies compromise by paying on revenue but capping the discount a rep can authorise.