Free sales commission calculator
Commission Calculator
Work out a commission check in seconds. Flat, tiered, or per deal, with split deals, profit-based plans, and draws. Every answer shows the math.
How it was worked out
- $50,000 in the tier from $0 to $50,000 pays 5%: $2,500.
- $34,000 in the tier from $50,000 to $100,000 pays 8%: $2,720.
- Added together, that is $5,220.
| Tier | Rate | Sales paid | Pays |
|---|---|---|---|
| $0 to $50,000 | 5% | $50,000 | $2,500 |
| $50,000 to $100,000 | 8% | $34,000 | $2,720 |
- One more $1,000 sale earns you
- $80
- If the higher rate paid on all sales
- $6,720
An estimate, not payroll, tax, or legal advice. Your signed pay plan decides what you are paid. Everything runs in your browser. Nothing you type is stored.
- Free, no sign-up
- Nothing you type is stored
- Shows the math
How sales commission is worked out
Most plans come down to one line: the sales you are credited with, times your rate. A flat plan uses one rate for every dollar. A tiered plan uses a higher rate once you pass a sales line. A per-deal plan pays a set amount for each deal, whatever its size.
Before the rate, two things can shrink the amount you are credited with. If you are paid on profit, only the gross margin counts, so a $10,000 sale at a 40% margin credits you with $4,000. If you split a deal with a teammate, you are credited with only your share of it.
The tier question most calculators skip
Tiered plans come in two kinds, and they pay very different amounts. In one kind, each rate pays only on the sales inside its tier. Say you earn 5% up to $50,000 and 8% above it, and you sell $84,000. You get 5% of $50,000 ($2,500) plus 8% of the other $34,000 ($2,720), for $5,220.
In the other kind, once you pass a line, the higher rate pays on every dollar, often called retroactive or from dollar one. The same $84,000 pays 8% of all of it, or $6,720. That is $1,500 more on the same sales, so it is worth knowing which one your plan uses. The calculator shows both answers side by side.
The second kind also makes the last few dollars before a line worth a lot. At $49,500 in sales, one more $1,000 sale moves every dollar to the higher rate. The calculator's "one more $1,000 sale" line shows that jump.
Draws against commission
A draw is a set amount you are paid each period while commission builds up. If your commission comes in under the draw, you still get the draw. What happens to the gap depends on the kind of draw.
With a recoverable draw, the gap is an advance. You owe it back out of future commission, and the calculator adds it to what you owe. With a non-recoverable draw, you keep the gap and owe nothing. When your commission beats a recoverable draw, the extra first pays down anything you already owe.
Questions
What is a tiered commission?
A plan where the rate goes up as your sales pass set lines, for example 5% up to $50,000, 8% up to $100,000, and 10% above that. It rewards selling more in the same period. Check whether each rate pays only on the sales inside its tier or on all of your sales once you pass a line, because the two pay very differently.
What does paid on gross margin mean?
Your commission is figured on the profit from a sale, not the full price. Gross margin is the share of each sale left after the cost of what was sold. A $10,000 sale at a 40% margin is $4,000 of profit, and your rate applies to that $4,000.
How does a commission split work?
When two people work a deal, each is credited with a share of it, often 50/50 or 60/40. Your rate then applies to your share. Pick your share under Split deal, base salary, or draw.
What is the difference between a recoverable and a non-recoverable draw?
Both pay you a set amount when commission is low. A recoverable draw is an advance you pay back out of later commission. A non-recoverable draw is yours to keep. Your pay plan says which one you have.
Is this my exact paycheck?
No. It shows the commission your plan's rules produce, before taxes and other deductions. Plans can add rules this calculator does not know, such as caps, clawbacks when a customer cancels, or different rates for new and renewing customers. Your signed pay plan decides what you are paid.
Do you store what I type?
No. The math runs in your browser and nothing you type is sent to us or stored. The numbers ride in the page address only so you can copy a link to your result.
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