Commission Calculator

Commission-based compensation sounds straightforward until a sales rep finishes the month with $180,000 in closed deals across three different tiers and has to reconcile their paycheck manually. At that point, the math branches: each tier applies only to the revenue within that band, not to total revenue. A tiered structure paying 4% on the first $50,000, 6% on $50,000 to $100,000, and 8% above $100,000 does not pay 8% on all $180,000. It pays 8% only on the top $80,000. The Bureau of Labor Statistics Occupational Employment data shows commission-based roles span real estate, insurance, financial services, wholesale trade, and technology sales, each with distinct structures. This calculator handles flat-rate commissions, tiered structures, and draw-against-commission scenarios accurately so you can verify your comp statement line by line.

This commission calculator computes earnings from flat-rate, tiered, and base-plus-commission structures. For flat-rate commissions, it multiplies total sales by the single rate. For tiered structures, it applies each tier rate only to the revenue within that tier and sums the results. For draw-against-commission arrangements, it subtracts any unearned draw already paid and shows the net payout. It also calculates the sales volume required to reach a specific income target.