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All calculatorsMethodology

Commission Calculator

Calculate sales commission with a flat rate or tiers (marginal or whole-amount), base pay, a split and a draw, plus the sales needed to reach an earnings target.

Interactive calculator · Method COMMISSION-PAY-1.0 · Last reviewed: 2026-11-04

Calculate your scenario

Flat: commission = sales × tier 1 rate.

Your inputs

Try an example

Default worked example. Edit the inputs to calculate your scenario.

Default worked example

Your commission $17,000.00
Gross earnings for the period $20,000.00
Effective commission rate 6.8%
Commission before split $17,000.00
Draw shortfall $0.00
Sales needed for the earnings target $250,000.00

Commission on $250,000.00 (marginal tiers) = $17,000.00 × 100% share = $17,000.00; base $3,000.00 + $17,000.00 paid = $20,000.00.

How to use the calculator

Enter sales and base pay for the same period, choose the structure your plan uses, and set the tier thresholds and rates (only tier 1 is used for a flat rate). Enter your share if the deal is split, any draw, and an earnings target to see the sales needed.

What the result means

With marginal tiers of 5% to $100,000, 7% to $200,000 and 10% above, $250,000 of sales earns $5,000 + $7,000 + $5,000 = $17,000 commission, and $20,000 total with the $3,000 base.

Formula and units

Flat: commission = sales × tier 1 rate. Marginal tiers: each rate applies only to the sales between its threshold and the next one, and the pieces are added. Whole-amount tiers: the rate of the highest tier the sales reach applies to all sales. Your commission = commission × your share; earnings = base pay + the larger of your commission and the draw. Sales needed solves for the smallest sales whose commission, after your share, covers target − base.

Worked examples

$250,000 sales with marginal tiers and $3,000 base: Sales for the period: 250000 $; Base pay for the period: 3000 $; Tier 1 rate (from $0; also the flat rate): 5 %; Tier 2 starts at sales of: 100000 $; Tier 2 rate: 7 %; Tier 3 starts at sales of: 200000 $; Tier 3 rate: 10 %; Your share of the commission (100 = no split): 100 %; Draw against commission for the period (0 = none): 0 $; Earnings target for the period: 20000 $; Commission structure: marginal.
Example result: Your commission: $17,000.00; Gross earnings for the period: $20,000.00; Effective commission rate: 6.8%; Commission before split: $17,000.00; Draw shortfall: $0.00; Sales needed for the earnings target: $250,000.00.

$150,000 split deal, whole-amount tiers and a $5,000 draw: Sales for the period: 150000 $; Base pay for the period: 0 $; Tier 1 rate (from $0; also the flat rate): 5 %; Tier 2 starts at sales of: 100000 $; Tier 2 rate: 7 %; Tier 3 starts at sales of: 200000 $; Tier 3 rate: 10 %; Your share of the commission (100 = no split): 50 %; Draw against commission for the period (0 = none): 5000 $; Earnings target for the period: 10000 $; Commission structure: whole.
Example result: Your commission: $5,250.00; Gross earnings for the period: $5,250.00; Effective commission rate: 3.5%; Commission before split: $10,500.00; Draw shortfall: $0.00; Sales needed for the earnings target: $200,000.00.

Limitations and common mistakes

Commission only, before payroll tax and deductions; no employment-law or wage-rule claims. A draw is shown as a minimum payout for the period; repayment, caps, clawbacks, accelerators and quotas follow your own plan. The earnings target counts base pay and commission, not the draw.

Applying the top tier rate to all sales when the plan is marginal (or the reverse) can misstate commission by thousands; check whether your plan pays each rate only on the sales inside its tier.

Sources and assumptions

Method COMMISSION-PAY-1.0; last formula review 2026-11-04. Sources and their supported claims. Calculation methodology.