Work out commission pay three ways: a flat rate on sales (with an optional base salary for total pay), tiered rates where sales fill each band in order, and in reverse — the sales you need to land a target commission. Switch modes above the inputs; everything updates live in your browser.
The maths: commission = sales amount × commission rate %. Total pay = commission + base salary.
The maths: sales needed = target commission ÷ (commission rate ÷ 100).
Effective (blended) rate = total commission ÷ sales amount. In tiered mode it sits between your lowest and highest tier rates, weighted by how much of the sales landed in each band.
Each band of sales earns its own rate; the total is the sum of the bands.
| Band | Sales in band | Rate | Commission |
|---|
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Flat, tiered and reverse commission — commission on sales, total pay with a base salary, band-by-band tier breakdowns, and the sales needed for a target commission.
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Calculate sales commission three ways: a flat rate on a sales amount with an optional base salary for total pay, tiered rates where sales fill each band in order with a commission figure per tier, and in reverse — the sales amount you need to earn a target commission at a flat rate.
Flat: $50,000 of sales at 8% earns $50,000 × 8% = $4,000 of commission; with a $3,000 base salary, total pay is $4,000 + $3,000 = $7,000. Tiered: the same $50,000 under a plan paying 5% on the first $20,000 and 8% above it earns $20,000 × 5% = $1,000 in Tier 1 plus $30,000 × 8% = $2,400 in Tier 2, for $3,400 in total — a blended rate of $3,400 ÷ $50,000 = 6.8%. Reverse: to earn a $5,000 commission at 8%, the sales needed are $5,000 ÷ 8% = $62,500, about $5,208.33 a month.
Flat commission = sales amount × commission rate %. Total pay = commission + base salary for the same period. Tiered commission fills bands in order: for each tier, the sales in the band are the sales amount capped at that tier’s cumulative “up to” level, minus the sales already counted in earlier tiers, and the band commission is that portion × the tier rate; the total is the sum of the bands, and the blended rate is total commission ÷ sales amount. A tier with a blank rate is off, and a blank “up to” on the last tier used means no limit. Reverse (flat only): sales needed = target commission ÷ (commission rate ÷ 100); a 0% rate has no answer and shows a dash instead of a division by zero.
Sales amount multiplied by the rate: $50,000 × 8% = $4,000. If there is also a base salary for the same period, total pay is the two added together — $4,000 + $3,000 = $7,000 in the worked example.
Band by band, like income tax. Sales fill the first tier up to its level at its rate, then spill into the next tier at that tier’s rate. Only the sales inside a band earn that band’s rate — reaching a higher tier does not re-rate the sales below it, which is why the blended rate lands between the lowest and highest tier rates.
Total commission divided by total sales. The tiered worked example pays $3,400 on $50,000, so the blended rate is 6.8% — between the 5% and 8% tier rates, weighted toward 8% because most of the sales landed in the higher band. It is the single number to compare when two plans are structured differently.
Use Reverse mode: sales needed = target commission ÷ rate. A $5,000 target at 8% needs $5,000 ÷ 0.08 = $62,500 of sales. The reverse calculation is for flat plans — under a tiered plan the sales needed depend on where the bands sit, so step the tiered sales figure up until the commission reaches your target.
Include it when you want total pay for the period — the job’s full earnings, not just the variable part. Leave it at zero or blank when you only care about the commission itself, for example when comparing two commission plans on the same base.
Each tier’s “up to” level must be above the tier before it, because the bands are cumulative sales levels. The calculator warns when the order is wrong and a band that starts after it ends earns nothing until the levels are fixed.
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