Gross Pay Calculator
Combine wages, overtime, bonuses, commissions, tips, and other earnings.
FREE SALES PAY TOOL
Sales Commission Calculator
Estimate commission from sales revenue, commission rate, optional base salary, and tiered targets.
Commission onlyBase + commissionTiered rates
CALCULATOR
Calculate sales commission
Optional tiered commission
This is a compensation estimate. Actual commission plans may use quotas, draws, clawbacks, caps, accelerators, gross margin, product-specific rates, or other rules.
How to calculate sales commission
A basic sales commission is sales revenue multiplied by a commission rate.
Commission = Sales revenue × Commission rate
Example: 8% commission on $50,000 in sales
A flat 8% commission on $50,000 equals $4,000. Tiered plans can pay different rates on different portions of sales, so the effective rate may be higher or lower than the first tier.
Common sales commission examples
| Sales | Commission rate | Commission |
|---|---|---|
| $10,000 | 5% | $500 |
| $20,000 | 5% | $1,000 |
| $25,000 | 8% | $2,000 |
| $50,000 | 8% | $4,000 |
| $50,000 | 10% | $5,000 |
How tiered commission works
Tiered plans apply different commission percentages as sales cross defined thresholds. This calculator treats each tier incrementally, so only the sales within each tier receive that tier's rate.
| Sales portion | Rate used |
|---|---|
| Up to Tier 1 threshold | Tier 1 rate |
| Tier 1 to Tier 2 | Tier 2 rate |
| Above Tier 2 | Top tier rate |
Base salary plus commission
Many sales compensation plans combine a fixed base salary with variable commission. Enter the base salary for the same pay period as your sales figures to estimate total compensation.
Sales commission calculator FAQ
How do I calculate commission percentage?
Multiply eligible sales by the commission percentage expressed as a decimal. For example, 5% is 0.05.
What is tiered commission?
Tiered commission uses different rates at different sales levels. Higher sales can unlock higher commission rates on the portion above a target.
What is base salary plus commission?
It is a compensation structure that combines guaranteed base pay with variable commission tied to sales performance.
Does this calculator support commission-only pay?
Yes. Enter zero for base salary.
Does this calculate taxes?
No. Results are gross compensation estimates before taxes and deductions.
How much is 5% commission on $10,000?
Five percent of $10,000 is $500. Multiply $10,000 by 0.05 to calculate the commission.
How much is 10% commission on $50,000?
Ten percent of $50,000 is $5,000 in commission.
What is an effective commission rate?
The effective commission rate is total commission divided by total sales. It is especially useful for tiered plans where different portions of sales earn different rates.
Can I calculate annual sales compensation?
Yes. Enter the number of pay periods per year and the calculator annualizes both estimated commission and total compensation.