Commission Calculator
calculator
Calculate sales commissions accurately with support for multiple commission structures, tiered rates, and bonus calculations
- Multiple commission structure support (flat, tiered, progressive)
- Bonus and accelerator calculations
- Team and individual commission tracking
- Export calculations to PDF/Excel
- Save calculation templates
- Multi-currency support
- →Calculate monthly sales commissions for sales teams
- →Model different commission structures before implementation
- →Verify commission payments for accuracy
- →Project earnings based on sales targets
- →Compare commission scenarios
- ✓Eliminate calculation errors
- ✓Save 5+ hours per commission cycle
- ✓Increase commission transparency
- ✓Model unlimited scenarios
- ✓Instant results with detailed breakdowns
Select Your Commission Structure
Choose from flat rate (single percentage), tiered (different rates at volume thresholds), or progressive (increasing rates as you sell more). Most sales teams use tiered structures.
Example: Tiered structure: 0-R100K @ 5%, R100K-R250K @ 7%, R250K+ @ 10%
Enter Sales Data
Input your total sales amount for the period (month, quarter, year). If using tiered rates, the calculator automatically applies the correct rate to each tier.
Example: Total sales: R300,000 for the month
Add Bonuses and Accelerators
Include any quota achievement bonuses, accelerators for exceeding targets, or special promotions. These are added on top of base commission.
Example: Quota bonus: R5,000 for hitting 100% of quota (R200K)
Configure Deductions (if applicable)
Some commission plans deduct draw advances, chargebacks from returns, or other adjustments. Enter these to calculate net commission.
Example: Monthly draw: -R3,000, Product returns: -R500
Review Commission Breakdown
The calculator shows commission by tier, bonuses earned, deductions, and your final net commission payment.
Example: Tier 1: R5,000 + Tier 2: R10,500 + Tier 3: R5,000 + Bonus: R5,000 - Draw: R3,000 = Net: R22,500
Scenario: Sales Rep with Tiered Commission - Monthly Payout
Inputs:
- Sales Amount: R300,000
- Commission Structure: Tiered (5% up to R100K, 7% on R100K-R250K, 10% above R250K)
- Quota Achievement Bonus: R5,000 (for exceeding R200K quota)
- Monthly Draw: -R3,000
- Returns/Chargebacks: -R500
Result:
Net Commission: R22,000. Breakdown: Tier 1 (R0-R100K): R5,000 (5% of R100K) + Tier 2 (R100K-R250K): R10,500 (7% of R150K) + Tier 3 (R250K+): R5,000 (10% of R50K) + Quota Bonus: R5,000 - Draw: R3,000 - Returns: R500 = R22,000 total.
What's the difference between tiered and progressive commission structures?
Tiered structures apply different rates to different portions of your sales (e.g., 5% on first R100K, 7% on next R150K). Progressive structures increase your rate on ALL sales once you hit a threshold (e.g., 5% on everything until you hit R100K, then 7% on everything). Progressive structures are more motivating but costlier for companies.
How do accelerators work in commission plans?
Accelerators increase your commission rate when you exceed quota targets. For example, if quota is R200K and you're at 8% normally, you might jump to 10-12% on all sales above R200K. This creates strong incentive to push past quota rather than coast after hitting minimum targets.
When are commission payments typically made?
Most companies pay commissions monthly, 15-30 days after month-end to allow for invoice processing and returns. Some industries (real estate, large enterprise sales) pay on deal close or contract signature. Always verify payment terms in your commission plan documentation.
What are common commission rates by industry?
Rates vary widely: SaaS (8-12%), Enterprise software (5-10%), Insurance (first-year: 50-100%, renewals: 2-15%), Real estate (2.5-3% per side), FMCG (1-4%), Financial services (15-40%), Automobiles (20-25% of gross profit). Higher rates typically indicate longer sales cycles or higher complexity.
Can commission plans change mid-period?
Legally, companies can change plans with notice (typically 30-90 days depending on employment contracts and local labor laws). However, most ethical companies honor existing plans for in-progress deals and grandfather existing reps for reasonable transition periods. Always get plan changes in writing.
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