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Tiered Sales 
Commission Calculator - 
Know What You Earn
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Start Calculating
Tiered Sales Commission Calculator
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Commission Results
Total Commission
$ 5,600,00
Base Salary
$ 50,000
Quota Attainment
120%
Commission as % of Target Variable
22.4%
Total Earnings
$55,600
On Target Earnings (OTE)
$75,000
Effective Commission Rate
4.67% of Total Sales
Commission Breakdown
| Tier Level | Sales Range | Sales in Tier | Commission Rate | Commission |
|---|---|---|---|---|
| Tier 1 | $0 - $50,000 | $50,000 | 3% | $1500 |
| Tier 2 | $50,000 - $1,00,000 | $50,000 | 3% | $1500 |
| Tier 3 | $1,00,000 - Infinity | $50,000 | 3% | $1500 |
Get a Demo Customized to Your Sales Comp Plans
Sales Commission Calculator FAQs
What is the typical commission rate for sales representatives?
Commission rates vary by industry and market size. Software/SaaS have a typical commission rate of 7 to 15% of the contract value whereas retail sales have a commission rate of around 2 to 8% of the sale price.
How are sales commissions calculated?
Sales commissions are calculated on the sale value, i.e. the amount of revenue generated from a particular sale. The amount is multiplied with the commission rate to arrive at the amount of commission earned for closing that sale. (Sale Value x Commission Rate)
Can I calculate quota attainment with this sales commission calculator?
Yes, in the results section, quota attainment is also displayed as a percentage. Quota attainment refers to the percentage of the target revenue assigned to a salesperson that they were able to generate in closed deals.
What are tiered commissions? Why are they used?
Tiered commissions refer to a commission structure where commission rates are different for different levels of quota attainment. For example, for a salesperson with a $50K sales quota, a commission rate of 5% up to $20k, 8% from $20k to $50k, and 12% beyond that up to $80k at which commissions are capped. They are used to further motivate employees to reach and exceed quota.
Sales Commission Calculator
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.
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