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Commission Calculator

Calculate sales commissions with various commission structures including flat rate, tiered, graduated, and draw against commission.

Commission
Total commission
$500.00
Base salary
$1,000.00
Total earnings
$1,500.00
Effective rate
5.00%
Period
monthly

Uses the original flat commission formula over 1 period. Sales amount: $10,000.00.

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Results update as you type.

Commission Calculator

Estimate sales commission for flat, tiered, graduated, and draw plans. The calculator uses sales amount, commission structure, period, base salary, commission rate when needed, and draw settings to show commission, total earnings, and effective commission rate.

How to use this calculator

Choose the commission structure and period, then enter the sales amount and base salary. For flat or draw plans, enter the commission rate. For draw plans, also enter the draw amount and number of periods. The default tier schedule is used for tiered and graduated options. For take-home planning, combine the result with the salary calculator and budget calculator.

How it works

Flat commission multiplies all sales by one rate. Tiered commission applies each tier rate only to the sales inside that tier. Graduated commission applies one rate to all sales after the achieved tier is selected. Draw plans compare earned commission with advances spread across periods.

flat commission=sales×commission rateflat\ commission = sales \times commission\ rate

Example

With 10,000 dollars of monthly sales, a 5 percent flat commission, and 1,000 dollars of base salary, commission is 500 dollars and total earnings are 1,500 dollars. The effective commission rate is 5 percent.

Interpreting results

Effective rate helps compare different structures on the same sales volume. Draw balances can be recoverable or nonrecoverable depending on plan terms, so verify the written compensation agreement. For percent math checks, see the percentage calculator.

Frequently asked questions

What commission structures are supported?
The calculator supports flat, tiered, graduated, and draw against commission structures.
What is an effective commission rate?
It is total commission divided by sales amount, expressed as a percentage, which helps compare different plans.
How is tiered commission different from graduated commission?
Tiered commission applies different rates to portions of sales, while graduated commission applies the achieved tier rate to all sales.
Does the calculator decide if a draw is recoverable?
No. It shows a draw schedule balance, but recoverability depends on the compensation agreement.

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Commission Calculator updated at