.svg){kind=icon}
Tiered Sales Commission Calculator - Know What You Earn
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore.
Start Calculating
Tiered Sales Commission Calculator
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
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 × 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.
Your Commission Results are ready!
Oops! Something went wrong while submitting the form.