Commission Calculator

Commission structures define how salespeople are rewarded for generating revenue. Choosing the right model depends on your industry, sales cycle length, and business goals.

Flat Rate Commissions

Flat rate commissions apply a single percentage to all sales. They are simple to understand, easy to administer, and provide predictable earnings. A 10% flat rate on $100,000 in sales always yields $10,000 in commission.

Tiered Commissions

Tiered commissions increase the rate as sales pass certain thresholds. For example, sales up to $49,999 may earn 5%, sales from $50,000 to $99,999 earn 10%, and anything above $100,000 earns 15%. This structure strongly motivates reps to exceed quotas.

Base Salary + Commission

Many roles combine a guaranteed base salary with variable commission. This offers income stability while still rewarding high performance. The ratio of base to variable pay varies widely by industry and role seniority.