Commission Calculator

Calculate sales commission earnings with flat rate, tiered/graduated, or base salary + commission structures. Project monthly and annual income from your sales volume.

Sale Amount ($)

Commission Rate (%)

Commission Earned

$5,000.00

Total Comp

$5,000.00

Effective Rate

10.00%

Sale Amount

$50,000.00

Compensation Breakdown

Commission

Commission: $5,000.00

Monthly & Annual Projections

Average Deal Size ($)

Deals per Month

Monthly Sales

$60,000.00

Monthly Income

$6,000.00

Annual Income

$72,000.00

Earnings at Different Sales Volumes

Sale Amount	Commission	Total Comp	Effective Rate
$10,000.00	$1,000.00	$1,000.00	10.00%
$25,000.00	$2,500.00	$2,500.00	10.00%
$50,000.00	$5,000.00	$5,000.00	10.00%
$75,000.00	$7,500.00	$7,500.00	10.00%
$100,000.00	$10,000.00	$10,000.00	10.00%
$150,000.00	$15,000.00	$15,000.00	10.00%
$200,000.00	$20,000.00	$20,000.00	10.00%
$500,000.00	$50,000.00	$50,000.00	10.00%

How to Use the Commission Calculator

Select your commission structure type (flat rate, tiered, or base + commission), enter your sale amount and rates, and instantly see your commission earned, total compensation, and effective rate. Use the projection section to estimate monthly and annual income based on your average deal flow.

Understanding Commission Structures

Flat rate is the simplest: one percentage applied to every sale. Tiered/graduated rewards higher volume with escalating rates on portions of the sale. Base salary + commission combines guaranteed income with performance-based earnings, common in B2B and SaaS sales roles.

Frequently Asked Questions

How do I calculate sales commission?+

Multiply the total sale amount by the commission rate. For example, a $50,000 sale at 10% commission earns $5,000. For tiered structures, each portion of the sale is multiplied by its respective tier rate and then summed together.

What is tiered or graduated commission?+

Tiered (graduated) commission applies different rates to different portions of a sale. For example, 5% on the first $10,000, 8% on the next $15,000, and 12% on everything above $25,000. This incentivizes higher sales volumes by rewarding larger deals with better rates.

What is the difference between flat rate and tiered commission?+

Flat rate commission applies a single percentage to the entire sale amount regardless of size. Tiered commission uses escalating percentages for different sale brackets, meaning the effective rate increases as sales grow. Tiered structures typically reward top performers more generously.

What is a typical commission rate for sales?+

Commission rates vary widely by industry. Real estate agents typically earn 2.5-3% per side, SaaS sales reps earn 8-14%, car salespeople earn 20-25% of gross profit, and insurance agents earn 5-20% depending on the product. Base salary + commission roles usually have lower commission rates.

How do I calculate effective commission rate?+

Divide your total commission earned by the total sale amount, then multiply by 100. For tiered structures, the effective rate will always be between your lowest and highest tier rates and increases as your sales volume grows.

What is OTE (On-Target Earnings)?+

OTE is the total expected compensation when a salesperson hits 100% of their quota. It includes base salary plus expected commission. For example, a $60,000 base with $60,000 expected commission gives a $120,000 OTE. Use the base salary + commission mode and monthly projections to estimate your OTE.