The Commission Calculator calculates earnings under a flat-rate or progressive tiered sales plan. Enter eligible revenue and the rates stated in the commission agreement.

Commission formulas

For a flat plan, the rate applies to all revenue. For a tiered plan, each rate applies only to revenue within that tier.

$\text{Flat commission}=\text{Revenue}\times\frac{\text{Rate}}{100}$

$\text{Tiered commission}=\sum(\text{Revenue in tier}\times\text{Tier rate})$

$\text{Effective rate}=\frac{\text{Total commission}}{\text{Revenue}}\times100$

Worked example

At a flat 6% rate, $80,000 of eligible revenue produces$ 4,800 commission. With 5% on the first $50,000 and 8% above it, progressive tiers produce$ 2,500 + $2,400 =$ 4,900, an effective rate of 6.125%.

Progressive versus retroactive tiers

Confirm whether the plan is progressive or retroactive. A retroactive accelerator applies the higher rate to all revenue after a threshold and will not match this progressive model.

Limitations

The result excludes draws, bonuses, caps, clawbacks, returns, split credit, taxes, and payment timing unless already reflected in eligible revenue.

Commission Calculator