Calculate commission earned on sales at a flat or tiered rate, plus total earnings.
A threshold means the effective rate on total sales is always below the headline rate, and the gap narrows as sales grow. Both figures are shown because plans are quoted on the headline rate but earnings depend on the effective one. Thresholds set too high demotivate early in a period, since a seller can work a full month and earn no variable pay at all.
Commission Pay
Commission = (sales − threshold) × commission rate
Commission = (sales − threshold) × commission rate A threshold means the effective rate on total sales is always below the headline rate, and the gap narrows as sales grow. Both figures are shown because plans are quoted on the headline rate but earnings depend on the effective one.
Thresholds set too high demotivate early in a period, since a seller can work a full month and earn no variable pay at all.
This calculator takes 4 inputs: Sales value achieved, Commission rate, Base salary for the period, Sales threshold before commission starts. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.