Commission Calculator
Enter the total sales amount and a commission rate to calculate the commission earned. The calculator supports two modes: a simple flat rate (one percentage applied to the entire sale) and a tiered structure where different rates apply to different ranges of the sales amount.
Tiered commissions are common in sales roles where the rate increases as you hit higher targets — for example, 5% on the first $10,000, 8% on $10,001 to $50,000, and 12% above $50,000. The calculator shows the commission earned in each tier and the total, so you can verify your compensation or model different structures.
This tool is useful for salespeople checking their expected earnings, sales managers designing compensation plans, and anyone negotiating a commission-based agreement.
By The Paper Room Editorial Team — Calculator Tools
Frequently asked questions
What is a tiered commission structure?▼
A tiered (or graduated) commission structure applies different rates to different portions of the sales amount. For example, you might earn 5% on the first $10,000 of sales and 10% on everything above that. Only the portion within each tier is charged at that tier's rate — it is not retroactive.
Is commission calculated on revenue or profit?▼
This calculator uses the total sales amount (revenue) as the base. Some companies calculate commission on profit margin or net revenue instead. Enter whatever base your compensation plan specifies as the sales amount.
How do I add more tiers?▼
In tiered mode, click the Add Tier button to add additional tiers. Each tier has a threshold (the upper bound of that range) and a rate. The last tier applies to all sales above the previous threshold with no upper limit.