Commission Calculator
Free commission calculator for sales pay. Work out flat-rate, tiered, and base-salary-plus-commission earnings, along with your effective commission rate. Estimates only.
Commission Calculator
Commission Structure
Pick how your plan pays. The inputs below adjust to match.
Total Sales Amount
Sales generated this period. Math is currency-agnostic.
Commission Rate (%)
Rates above 100% are almost always a typo. Double-check the value.
Base Pay for the Period ($)
The fixed pay you earn before any commission.
Commission Tiers
Tier thresholds must increase. Each "sales up to" value has to be larger than the one above it.
Leave the last tier's "sales up to" blank to mean "and above". Each tier's rate applies only to the sales inside that band (marginal).
Base Pay (optional)
Add a base if your tiered plan also pays a salary. Leave blank for commission-only.
Effective rate = commission earned ÷ total sales. On a base + commission plan it reflects commission only, not your base pay.
Tier Breakdown
| Band | Sales in tier | Rate | Commission |
|---|
Track the Hours Behind Your Commission
Commission pays the sale, but your hours still drive overtime and the regular rate. Timeclock44 logs shifts and breaks so your paycheck math holds up.
How to calculate sales commission
The basic commission formula is short: sale amount times commission rate, divided by 100. Close $10,000 in sales at a 5% rate and you earn $10,000 × 5 ÷ 100 = $500. The sales amount is the revenue you generated, the rate is the percentage your plan pays you, and the payout is the dollars that land in your check.
Switch the structure chip to "Flat rate" for this simplest case. Enter the sales total and the rate, and the calculator returns the commission earned and your effective rate, which in flat mode equals the rate you typed.
Commission structures explained (flat, tiered, base + commission)
This calculator covers the three structures you'll run into most. Flat rate pays one percentage on every dollar of sales, so it's clean and predictable. Base + commission adds a fixed salary on top, trading a lower commission rate for a guaranteed floor. Commission-only roles skip the base and usually pay a higher rate to make up for the missing wage.
Tiered (or accelerator) plans raise the rate as you sell more, which rewards reps who beat quota. Two to four tiers is typical. The trade-off comes down to this: a base gives you stability, while heavier commission weighting raises both your ceiling and your risk.
How tiered commission and the effective rate work
Tiered plans here use marginal math, the same idea as income tax brackets. Each tier's rate applies only to the portion of sales inside that band, and then the parts get added together. Say a plan pays 3% up to $20,000, 5% from $20,000 to $50,000, and 8% above $50,000. On $60,000 of sales you earn 3% of the first $20,000 ($600), 5% of the next $30,000 ($1,500), and 8% of the last $10,000 ($800), for $2,900 total.
That $2,900 on $60,000 of sales works out to a 4.83% effective rate, the blended average you actually earned. Since the headline tier rates differ from that number, the effective rate is the one worth watching. The breakdown table shows the sales in each band and the commission it produced, so you can check every step.
Commission, overtime, and your paycheck
Commission doesn't sit off on its own on your paycheck. Under the FLSA, nondiscretionary commissions count toward the regular rate of pay, the hourly figure used to compute overtime. A strong commission week can push up the overtime premium your employer owes. You can work through it with the regular rate of pay calculator and the overtime calculator.
For withholding, commission counts as supplemental wage income and is often withheld at a flat supplemental rate when it's paid separately. Keeping clean records of the hours behind those sales is easier with a tool like Timeclock44, which logs shifts and breaks alongside your pay events. Disclaimer: this calculator provides estimates only and is not tax or legal advice. Confirm specifics with your payroll department or a qualified professional.
Frequently Asked Questions
Common questions about commission calculator
How do you calculate commission?
Multiply the sale amount by the commission rate, then divide by 100. On $10,000 in sales at a 5% rate, that's $10,000 × 5 ÷ 100 = $500 in commission. The rate is the percentage of each sale you keep as pay.
What is a tiered commission structure?
A tiered plan pays a different rate for each band of sales. Most plans work like tax brackets, where only the portion of sales that falls inside a tier earns that tier's rate. You might get 3% on the first $20,000, 5% on the next band, and 8% above that. This calculator uses the marginal method and shows a per-tier breakdown.
How is base salary plus commission calculated?
Add the base pay for the period to the commission earned: base salary + (sales × rate ÷ 100) = total income. A $2,000 base plus $500 of commission on $10,000 of sales at 5% comes to $2,500 for the period.
What is a good commission rate for sales?
It depends on the industry and the structure. Rates of 5% to 10% are common when a base salary is included, while commission-only roles often pay more (sometimes 20% or higher) to make up for the lack of a guaranteed wage. You can weigh the trade-offs with the salary vs hourly calculator.
What is the effective (or blended) commission rate?
The effective rate is commission earned divided by total sales, times 100. It's the real average percentage you took home across every sale. On a tiered plan the effective rate sits between your lowest and highest tier rates, so it usually differs from any single headline rate.
How are tiered commissions calculated, on total sales or per bracket?
There are two methods. The marginal (per-bracket) method applies each tier's rate only to the sales inside that band, then adds up the parts. The cliff method applies one rate to the whole amount once you cross a threshold. This tool uses the marginal method, which is the more common setup you'll see in published examples.
Are sales commissions included in overtime pay?
Yes. Under the FLSA, nondiscretionary commissions are part of the regular rate of pay used to compute overtime, so commission can raise the overtime rate owed for the period. See the regular rate of pay calculator and the overtime calculator for the full math.
Is commission taxed differently from regular wages?
Commission counts as supplemental wages for withholding. When it's paid separately, it's often withheld at the flat federal supplemental rate rather than your normal payroll tables. That's withholding, not your final tax bill. Estimates only, not tax advice.