Commission Calculator
Compute a salesperson's or affiliate's earnings from gross sales — enter total sales, the base commission rate, choose how tiers work (flat, full-tier or marginal-reset), set the tier threshold and higher rate, and add any flat bonus.
Your Result
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| Result | What it means? |
|---|---|
| < 2% | Low Effective rate is below 2% — typical of high-volume / low-margin product lines (commodities, retail). |
| 2% – 5% | Typical Effective rate is between 2% and 5% — common for inside sales, retail, and many B2B roles. |
| 5% – 10% | Good Effective rate is between 5% and 10% — common for B2B SaaS, insurance, and skilled outside sales. |
| 10% – 20% | Excellent Effective rate is between 10% and 20% — strong, often seen in real estate, capital equipment and senior sales. |
| > 20% | Exceptional Effective rate exceeds 20% — typical of luxury goods, niche advisory work or short-cycle high-margin deals. |
| — | Unknown Enter sales and rates above to compute the effective commission rate. |
Commission Equation
E = S·r + (S − T)·rₜ + B
Total earnings = base commission on full sales + tier commission on the overage (mode-dependent) + flat bonus. Effective rate = total earnings ÷ sales × 100.
- S = total sales, r = base rate (decimal), T = tier threshold, rₜ = higher-tier rate (decimal), B = flat bonus.
- Flat: tier adds nothing. Full-tier: the higher rate applies to the entire overage above T. Marginal-reset: the base rate applies up to T and the higher rate applies to each marginal unit above T.
- Effective rate normalises total earnings against sales so different comp plans can be compared on a single scale.
This calculator provides an estimate of sales-commission earnings based on the inputs you supply. Actual comp plans vary widely by industry, employer, role seniority and product margin.