Sales Commission Calculator
Calculate sales commission with flat or tiered rates — see your total earnings, effective rate, and tier breakdown.
Commission Earned
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Sales Amount
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Effective Rate
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Base Salary
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Total Earnings
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How to Use the Sales Commission Calculator
- Choose commission type: Flat Rate for a single percentage or Tiered Rates for progressive commissions.
- Enter sales amount: Your total sales volume.
- Enter rate(s): Set the commission percentage (flat) or tier limits and rates (tiered).
- Optionally add base salary: Include a base salary to see total earnings.
- View your results: Commission, effective rate, and total earnings appear instantly.
Commission Formulas
Flat rate commission:
Commission = Sales Amount × (Rate / 100)
Tiered commission: Each tier applies its rate only to the portion of sales within that tier's range.
Commission = Tier1 Sales × Rate1 + Tier2 Sales × Rate2 + ...
Total earnings:
Total Earnings = Base Salary + Commission
Common Commission Structures
| Industry | Typical Rate | Structure |
|---|---|---|
| Real Estate | 2.5% - 3% | Flat per transaction |
| Retail Sales | 3% - 10% | Flat or tiered |
| Software/SaaS | 8% - 15% | Tiered with accelerators |
| Insurance | 5% - 20% | First year vs. renewal |
| Advertising | 10% - 20% | Flat on media spend |
Frequently Asked Questions
What is tiered commission?
Tiered commission applies different rates to different portions of sales. For example, 5% on the first $10,000, 8% on $10,001-$25,000, and 12% above $25,000. This incentivizes higher sales volumes.
What is a good commission rate?
Commission rates vary widely by industry. A "good" rate depends on base salary, average deal size, sales cycle length, and industry norms. Higher base salaries typically come with lower commission rates and vice versa.
What is effective commission rate?
The effective rate is your total commission divided by total sales, expressed as a percentage. With tiered rates, the effective rate is a blended average of all tiers and is always between your lowest and highest tier rates.