Tiered Sales Commission Calculator: User Guide
Step 1: Enter Basic Compensation Information
- Enter the rep's annual Base Salary
- Enter the Target Variable Compensation amount
- Select whether to cap commissions at the target variable amount by checking/unchecking Capped Commission?
Step 2: Enter Sales Performance Data
- Enter the Total Sales Amount achieved by the rep
- Enter the rep's Quota/Target
Step 3: Configure Commission Tiers
The calculator has default tiers, but you can customize the tiered commission structure. The default input is:
- Tier 1: $0-$50,000 at 3% commission rate
- Tier 2: $50,000-$100,000 at 5% commission rate
- Tier 3: $100,000+ at 8% commission rate
To modify tiers:
- Change the commission Rate % for any existing tier
- Enter 0% rate in the first tier to add a gate to your commission
- Click + Add New Tier to add additional tiers
- Click the Ă— button to remove a tier (except for the first tier)
- Tiers automatically connect - the maximum of one tier becomes the minimum of the next
Step 4: Calculate Commission
- Click the Calculate Commission button to generate results
Step 5: Review Results
The commission results show:
- Total Commission earned (with CAPPED indicator if applicable)
- Base Salary amount
- Total Earnings (Base + Commission)
- On-Target Earnings (OTE) total earnings potential
- Quota Attainment percentage
- Commission as % of Target Variable
- Effective Commission Rate across all sales
The detailed Commission Breakdown shows how much was earned in each tier.