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Sales commission calculator

Enter the sales and the commission rate to see what is owed. Add up to two higher tiers for sales above a target, choose whether the higher rate covers only the extra sales or all of them, and subtract any draw already paid.

Commission by sales band
Sales bandRateSales in bandCommission

Commission is worked out on the sales figure you enter. If your plan pays on net sales, enter the amount after discounts, returns and taxes. A calculation aid, not financial or tax advice.

Put the commission plan in writing

A written plan avoids the most common commission disputes: what the rate applies to, when commission is earned, what happens on refunds, and what is paid after someone leaves. The free sales commission agreement template covers each of these, with an optional accelerator above a threshold and a recoverable or non-recoverable draw. Some places require commission plans for employees to be in writing, including California.

Add this calculator to your website

Free for blogs, accountants, law firms, trade associations and anyone who helps small businesses. Paste the code where you want the calculator to appear. It runs in your visitors' browsers, with no cookies, no tracking, and nothing they type sent anywhere.

Preview

The last line of the code resizes the calculator to fit; if your site strips scripts, leave it out and the calculator still works at a fixed height. On a dark website, add ?theme=dark after sales-commission.html. Please keep the credit line under the calculator.

Questions

How is sales commission calculated?

Multiply the sales by the commission rate: 5% commission on $80,000 of sales is $4,000. Check what the rate applies to. Most plans use the net sales price, after discounts, returns and taxes, and some pay only once the customer has paid.

What is tiered commission?

A plan where the rate rises once sales pass a level. The higher rate can apply only to the sales above that level (marginal, like tax brackets) or to all sales once the level is reached (whole amount). The whole-amount method pays more and jumps at each level, so a plan should say clearly which one it uses.

What is a draw against commission?

An advance paid to a salesperson each period and set against the commission they earn. If the commission is more than the draw, the difference is paid. If it is less, a recoverable draw carries the shortfall forward to later commission, while a non-recoverable draw does not.

Is anything I type sent anywhere?

No. The calculation runs entirely in this page, so nothing you type leaves your computer.

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