Finance
Commission Calculator
Calculate sales commission for flat-rate or tiered plans. Add a base salary, split, or up to four progressive tiers to see total pay and blended rate.
Commission details
Total pay
$42,500.00
- Commission
- $2,500.00
- Rep share
- $2,500.00
- House share
- $0.00
- Base salary
- $40,000.00
- Effective rate
- 85.00%
Frequently Asked Questions about the Commission Calculator
What is the difference between flat-rate and tiered commission?
Flat-rate pays the same percentage on every dollar of sales. Tiered uses progressive brackets: a lower rate applies up to a threshold, and a higher rate applies only to sales above it. For example, you might earn 5% on the first $10,000 and 8% on everything above that. Tiered plans are common in B2B sales because they reward reps who exceed quota.
How does a base salary plus commission plan work?
You earn a fixed salary regardless of how much you sell, then add a commission percentage on top of your sales. The calculator adds your base salary and your rep share of the commission to get total pay, then divides total pay by sales to show your effective rate. A $50,000 base plus $5,000 commission on $100,000 in sales is a 5% commission rate but a 55% effective rate, since the salary is counted as pay over those sales.
What is a rep / house split?
A rep/house split divides the gross commission between the salesperson and the company. On a 70/30 split, the rep keeps 70% and the company keeps 30%. The calculator multiplies the gross commission by your rep share percentage to get your take-home amount. This structure is standard in real estate and recruiting.
What does blended commission rate mean?
The blended rate is your total commission divided by your total sales, expressed as a percentage. On a tiered plan it falls somewhere between your lowest and highest tier rates, because different portions of your sales earned different rates. It gives you a single number to compare plans or estimate earnings at a glance.
Why do the tiers need to be sorted?
Tiers are progressive brackets starting from $0, so each upper bound must be higher than the one before it. Out-of-order or overlapping bounds make it impossible to assign a unique rate to a given dollar of sales, so the calculator rejects the setup and asks you to fix the ordering before it can compute a result.