Calculate sales commission with tiers and accelerators
Enter deals closed, deal value, quota, your rate, the rate above quota and base salary. Get commission, total pay, your effective rate and a tier-by-tier table, with the formula shown. Free, no account.
Your commission
Example inputs, pre-filled so you can see how it works. Change every number to your own plan.
12 deals at $5,000 is $60,000 in sales, 120% of a $50,000 quota. Commission is $5,200, an effective rate of 8.7%. With a $3,000 base salary, total pay is $8,200.
| Tier | Sales range | Rate | Your sales in it | Commission |
|---|---|---|---|---|
| Tier 1: up to quota | $0 to $50,000 | 8% | $50,000 | $4,000 |
| Tier 2: quota to 150% of quota | $50,000 to $75,000 | 12% | $10,000 | $1,200 |
| Tier 3: above 150% of quota | $75,000 and above | 16% | $0 | $0 |
The working
- Tier 1: up to quota: $50,000 × 8% = $4,000
- Tier 2: quota to 150% of quota: $10,000 × 12% = $1,200
- Tier 3: above 150% of quota: $0 × 16% = $0
At the flat 8% rate with no accelerators, commission would be $4,800; the tiers add $400.
Formula: sales = deals × deal value. Commission = sum over tiers of (sales in the tier × the tier's rate). Effective rate = commission ÷ sales. Total pay = base salary + commission. Rates apply only to the sales inside each tier, not to every dollar once a tier is reached. Your own plan may pay a higher rate on all sales once you pass quota (retroactive); this tool does not model that. Pre-filled numbers are example inputs.
How tiered commission works
A tiered plan pays one rate on sales up to quota and a higher rate, an accelerator, on the sales above it. Some plans add a third tier at a higher attainment. Each rate applies to the dollars inside its band, so passing quota raises the rate on the next sale, not on the earlier ones. If your plan pays the higher rate on everything once quota is hit, set the base rate and accelerator to the same number to see the flat case, or work out the retroactive total by multiplying all sales by the higher rate.
Using it
- Set quota to 0 for a plain flat rate.
- Set the rate above quota equal to the base rate to see the plan without an accelerator.
- Enter the period your quota covers: monthly quota with monthly base, or quarterly with quarterly.
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Questions
Multiply the sales in each tier by that tier's rate and add the tiers up. With no tiers, it is total sales times the commission rate.
A higher commission rate paid on sales above quota. This calculator pays it only on the sales above quota, not on the earlier ones.
Total commission divided by total sales. With accelerators it ends up between the base rate and the top rate.
Only if your plan is marginal tiers with a quota. Read your plan for retroactive rates, caps, draws and clawbacks, which this tool does not model.
No. The result is worked out when the page is served and not saved.
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