Using this commission calculator
- Simple commission — enter sales price and rate; leave commission blank. Or solve for any missing third value.
- Tiered commission — set bracket thresholds and rates, then click Calculate tiered.
- Enable Add base for a flat base payout on top of tier earnings.
What is a commission?
Commission compensates salespeople, agents, or affiliates as a share of revenue they generate. Structures vary: flat percentage of gross sales, salary plus incentive, or escalating tiers that reward higher volume.
Simple percentage
Tiered (marginal) structure
Each tier applies only to dollars inside that bracket — like marginal tax brackets:
Each slice is the portion of sales falling inside tier i
Example: $27,000 in sales with 3% on the first $20,000 and 5% above yields $600 + $350 = $950 before any base pay.
Common compensation models
| Model | Best for |
|---|---|
| Commission only | Independent agents with variable volume |
| Base + commission | Roles needing income stability plus upside |
| Tiered / accelerator | Teams with quota stair-steps |
| Flat per deal | High-ticket low-volume products |
Examples and use cases
Worked example
Tiered commission on $27,000 in sales — 3% on the first $20,000 and 5% above:
- First tier: $20,000 × 3% = $600
- Second tier: $7,000 × 5% = $350
- Total commission = $950 (before base pay)
Real-world use cases
- Real estate agent: An agent models a tiered split on a $450,000 closing to compare brokerage vs independent fee structures.
- SaaS sales quota: A rep checks how much accelerators add when Q4 deals push them into a higher commission bracket.
- Affiliate payout: A creator estimates earnings on $8,000 in referred sales at a flat 8% vs a tiered program with a higher rate above $5,000.