Sales Commission Calculator
Enter your sales for the period and the commission rates to see what you earn. Use a single rate, or set a quota with a higher rate above it. Add a base salary to see total pay.
How to use this sales commission calculator
- Enter the total sales you made in the period.
- Enter the quota, which is the sales level where the rate changes. Enter 0 if there is no quota.
- Enter the commission rate for sales up to the quota and the rate above it. For a flat rate, use the same number twice.
- Add a base salary if you get one.
- Press Calculate to see your commission and total pay.
How to calculate sales commission
A tiered plan pays one rate up to the quota and another rate on the rest.
- Sales up to quota = the smaller of sales and quota
- Sales above quota = sales – quota, if positive
- Commission = sales up to quota x first rate + sales above quota x second rate
- Total pay = commission + base salary
- Effective rate = commission / total sales
Worked example
You sell $80,000 in a month with a quota of $50,000. You earn 5% up to the quota, which is $2,500.00, and 8% on the extra $30,000, which is $2,400.00. Your commission is $4,900.00. With a base salary of $3,000 your total pay is $7,900.00. The effective rate on all sales is 6.13%.
With a flat plan of 5% on everything, the same sales would pay $4,000.00, so the higher rate above quota adds $900.00.
To test a plan, try different sales numbers and quotas. A higher rate above quota rewards strong months, but a low quota can make a plan expensive for the employer. If your plan pays commission on profit instead of revenue, enter the gross profit as your sales number so that the same formulas apply.
Assumptions & limits
- Two tiers only. Plans with several tiers can be worked out one tier at a time.
- Sales are counted in full, with no returns, chargebacks, splits or caps. Many plans reduce commission for returns.
- The amounts are gross, before taxes. Commission is generally taxed as wages.
- The calculator does not read your plan. Always follow the terms of your own commission agreement.
- Rates can apply to revenue or to profit. Make sure the sales number matches what your plan uses.
Frequently asked questions
How do I calculate sales commission?
Multiply the sales by the commission rate. With a quota, use one rate on sales up to the quota and another on the rest.
What is a quota?
A quota is the sales target. Many plans pay a higher rate once you beat it.
What is the effective commission rate?
It is the total commission divided by total sales. It falls between the lower and higher rates.
Is commission paid on revenue or profit?
It depends on the plan. Some pay on revenue, some on gross profit. Use the same basis in the sales field.
Does the calculator subtract returns?
No. Subtract returns from your sales number before entering it.
Can I include a base salary?
Yes. Enter it and the calculator shows total pay.
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Last updated: November 2026