Commission Calculator
Calculate commission from net sales, add base pay and bonuses, and compare total earnings for one pay period and a full year.
Sales and commission plan
Use the credited sales and rates defined by your own compensation plan. Your entries stay in this browser.
Commission and earnings
How sales commission is calculated
For a flat plan, commission is eligible sales × commission rate. For a tiered plan, sales up to the threshold use the base rate and only sales above the threshold use the higher rate.
Eligible sales in this tool equal gross sales minus returns or adjustments, never below zero. Total period earnings add base pay and bonuses to the commission. The annual value assumes the same result for every pay period.
Worked tiered commission example
With a 5% base rate up to $20,000 and an 8% rate above that threshold, $30,000 of eligible sales earns $1,000 on the first tier and $800 on the remaining $10,000. Total commission is $1,800, an effective rate of 6%.
Incremental tiers versus retroactive tiers
This calculator applies the higher rate only to sales above the threshold. Some plans apply the new rate to all eligible sales once a quota is reached. That retroactive method produces a different result, so check the written plan before using the estimate for payroll.
Returns, timing and credited revenue
Use net eligible sales from the same commission period. Confirm whether returns are deducted immediately or clawed back later, when a sale becomes credited, how shared deals are split and whether tax, shipping or discounts are excluded from the commission base.
Real commission plans may use quotas, accelerators, caps, product-specific rates, team splits, draws, clawbacks and different definitions of credited revenue. Confirm the final amount against the written compensation plan.