Quota attainment
160%
$160,000.00 of $100,000.00 quota.
Free sales compensation tool
Free Sales Commission Calculator
Sales commission is the commission base (revenue or gross profit) multiplied by the commission rate. Tiered plans apply each rate only to the sales within its band, and quota-based plans pay variable pay multiplied by the payout earned at your quota attainment.
Pick a flat-rate, tiered, or OTE plan, enter sales and quota, and see total commission, attainment, effective rate, a per-tier breakdown, total cash compensation, payout after a draw, and what you would earn at other attainment levels.
No signupPrivate in your browserMarginal vs. retroactive tiersDraws and what-if scenarios
Commission plan
Choose a plan and enter the period
$Bookings or revenue credited to the rep.
$Sales target for the same period. Required for this plan.
$Base pay for the same period, for total cash comp.
Formatting only. No conversion.
Tier table (by quota attainment)
Leave the last tier's "to" blank so it is open-ended.
| Tier | From (% of quota) | To (% of quota) | Rate | Remove |
|---|---|---|---|---|
| 1 | ||||
| 2 | ||||
| 3 |
Draw against commission (optional)
Live result
$19,500.00 total commission
On $160,000.00 in sales against a $100,000.00 quota (160% attainment), this marginal tiered plan pays $19,500.00 in commission, an effective rate of 12.19% of sales. Marginal tiers pay $19,500.00; retroactive tiers pay $32,000.00 (a $12,500.00 difference). Total cash compensation with base salary: $39,500.00.
Effective commission rate
12.19%
Commission ÷ sales for this period.
Total cash compensation
$39,500.00
Base $20,000.00 + commission $19,500.00.
Commission paid
$19,500.00
No draw applied.
Marginal (by band)
$19,500.00
Retroactive (whole amount)
$32,000.00
Difference
$12,500.00
Commission breakdown
| Band | Sales in band | Rate | Commission |
|---|---|---|---|
| 0% to 100% of quota | $100,000.00 | 10% | $10,000.00 |
| 100% to 150% of quota | $50,000.00 | 15% | $7,500.00 |
| 150%+ of quota | $10,000.00 | 20% | $2,000.00 |
| Total | $19,500.00 |
What if
Payout at other attainment levels
80% of quota
$8,000.00
on $80,000.00 sales
100% of quota
$10,000.00
on $100,000.00 sales
120% of quota
$13,000.00
on $120,000.00 sales
150% of quota
$17,500.00
on $150,000.00 sales
Sales needed to earn a target commission
Sales needed
$187,500.00
187.5% of quota
Assumptions and limits
Use the estimate to check a plan, then confirm with your comp plan document
Tiers are measured on attainment
Tier bounds are percentages of quota, and a tier counts as reached once attainment meets its starting value. Your plan may define boundaries, crediting, or splits differently.
OTE curves vary by company
This tool pays 1:1 from the decelerator threshold to 100% of quota, multiplies payout above quota by the accelerator, and then applies the cap. Many plans use custom curves.
One period at a time
Draw recovery uses the deficit you carry in. Clawbacks, SPIFFs, multi-year deals, and payment timing are not modeled. Amounts are rounded to cents.
Sales commission FAQs
How do you calculate sales commission?
Multiply the commission base (revenue or gross profit) by the commission rate. Tiered plans apply each tier's rate to the sales inside its band and add the results; quota-based plans multiply variable pay by the payout percentage earned at your attainment. For example, $80,000 in sales at an 8% rate earns $6,400.
What is a tiered commission structure?
A tiered structure pays higher rates as a rep passes quota attainment thresholds. For example: 10% up to 100% of quota, 15% from 100% to 150%, and 20% above 150%. On a $100,000 quota with $160,000 in sales, that pays $10,000 + $7,500 + $2,000 = $19,500.
What is the difference between marginal and retroactive tiers?
Marginal tiers apply each rate only to the sales inside its band, like tax brackets. Retroactive tiers apply the rate of the highest tier reached to every sale. With the same $160,000 in sales, marginal tiers pay $19,500 while retroactive tiers pay $160,000 x 20% = $32,000, and payout jumps at each tier boundary.
What is a draw against commission?
A draw is an advance paid before commission is earned. A recoverable draw is repaid from later commission, so any shortfall carries forward as a deficit. A non-recoverable draw works as a guaranteed minimum and the shortfall is forgiven. For example, earning $3,000 against a $5,000 recoverable draw carries a $2,000 deficit into the next period.
What is a typical sales commission rate?
There is no single standard: rates vary widely by industry, deal size, margin, and whether the rep also earns a base salary. If you have an on-target earnings (OTE) plan, derive the implied rate by dividing target incentive by quota. For example, $12,000 of variable pay on a $100,000 quota implies a 12% rate.
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