Sales Commission Calculator
Calculate commission earnings on flat-rate, tiered, and revenue-share structures. Useful for sales reps and managers planning quotas.
What this calculates
Commission structures vary — flat percentage, tiered (higher rates as you hit higher revenue), or accelerator (boost after quota). This calculator handles both flat and tiered structures, showing total commission and effective rate on the full sales number.
Formula & how it works
Flat: commission = sales × rate. Tiered: sum (sales_in_tier × tier_rate) across tiers. Effective rate = total_commission ÷ total_sales × 100. Real estate typical 5-6 % split between buyer and seller agent. Tech SaaS sales: 8-15 % of ACV. Retail: 1-5 %. Cars: $50-500 per car flat plus % over invoice.
Worked example
Tiered structure: 5 % to $100K, 8 % to $200K, 12 % above. Sold $250K. Commission = 100K × 5 % + 100K × 8 % + 50K × 12 % = $5,000 + $8,000 + $6,000 = $19,000. Effective rate = 7.6 %. Compared to flat 5 %: $12,500. Tiered rewarded the over-target performance.
Frequently asked questions
What's an accelerator?
A commission boost above quota. E.g., 100 % of plan = 10 % commission, 100-150 % of plan = 15 %, above 150 % = 20 %. Designed to motivate top performers; common in SaaS sales.
Draw vs commission?
A draw is a regular paycheck advance against future commissions. 'Recoverable draw' is paid back from earned commissions. 'Non-recoverable' (rare) doesn't have to be paid back if you miss quota.
How is real-estate commission split?
Typically 5-6 % of sale price, paid by seller. Split between listing agent and buyer agent, each side then splits with their broker (usually 50/50 or better as you become senior). Result: listing agent might net 1.5 % personally on a 6 % commission.
Are commissions taxable?
Yes, as ordinary income. US: subject to supplemental withholding (22 % flat for most). At year-end you owe based on your real tax bracket — high earners often owe more in April.