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NetGrow

Sales Commission Calculator

Calculate commission from sales amount: flat %, tiered %, or base + commission. Optional draw.

Use the Sales Commission Calculator

Choose plan type (flat %, tiered %, or base + %), enter sales and rates. Commission and total compensation are calculated.

Commission plan

Flat %, tiered %, or base + commission. Optional draw against commission.

Results

Commission earned
$10,000
Total compensation
$10,000
Effective commission rate
10%

Total comp = Base + Commission − Draw. Tiered: apply each band rate to sales in that band only.

What this metric means

Commission is pay tied to sales. Flat % is simple; tiered rewards incremental sales; base + commission gives security plus upside.

How to calculate

Flat: Commission = Sales × Rate. Tiered: sum (band width × band rate) for each band. Total comp = Base (if any) + Commission − Draw.

How to improve the metric

Align plan to goals (volume vs margin vs mix). Use tiers to push above thresholds. Balance base and commission for retention and motivation.

Common mistakes

Applying tier rates to full sales instead of band width; forgetting to subtract draw; or mixing pre- and post-discount sales in the same plan.

How to interpret your result

Use commission and total comp for payroll and budgeting. Use effective rate to compare plans or to explain cost as % of sales.

FAQs

How is tiered commission calculated?▾
Each band applies its rate only to sales in that band. E.g. 0–50k at 5%, 50k–100k at 8%: on $80k you get 50k×5% + 30k×8%.
What is a draw?▾
An advance against future commission. Total comp = Base + Commission − Draw. If commission is less than draw, the rep may owe the difference or carry negative balance.
What's effective commission rate?▾
Commission earned ÷ Sales. It's the average rate across the sale, useful when tiers or base are involved.
Base + commission vs draw?▾
Base is fixed pay. Draw is an advance on commission. Base is paid regardless of sales; draw is recovered from commission.

Related tools

Browse all calculators on NetGrow.

NetGrow

Sales Commission Calculator

Calculate commission from sales amount: flat %, tiered %, or base + commission. Optional draw.

Use the Sales Commission Calculator

Choose plan type (flat %, tiered %, or base + %), enter sales and rates. Commission and total compensation are calculated.

Commission plan

Flat %, tiered %, or base + commission. Optional draw against commission.

Results

Commission earned
$10,000
Total compensation
$10,000
Effective commission rate
10%

Total comp = Base + Commission − Draw. Tiered: apply each band rate to sales in that band only.

What this metric means

Commission is pay tied to sales. Flat % is simple; tiered rewards incremental sales; base + commission gives security plus upside.

How to calculate

Flat: Commission = Sales × Rate. Tiered: sum (band width × band rate) for each band. Total comp = Base (if any) + Commission − Draw.

How to improve the metric

Align plan to goals (volume vs margin vs mix). Use tiers to push above thresholds. Balance base and commission for retention and motivation.

Common mistakes

Applying tier rates to full sales instead of band width; forgetting to subtract draw; or mixing pre- and post-discount sales in the same plan.

How to interpret your result

Use commission and total comp for payroll and budgeting. Use effective rate to compare plans or to explain cost as % of sales.

FAQs

How is tiered commission calculated?▾
Each band applies its rate only to sales in that band. E.g. 0–50k at 5%, 50k–100k at 8%: on $80k you get 50k×5% + 30k×8%.
What is a draw?▾
An advance against future commission. Total comp = Base + Commission − Draw. If commission is less than draw, the rep may owe the difference or carry negative balance.
What's effective commission rate?▾
Commission earned ÷ Sales. It's the average rate across the sale, useful when tiers or base are involved.
Base + commission vs draw?▾
Base is fixed pay. Draw is an advance on commission. Base is paid regardless of sales; draw is recovered from commission.

Related tools

Browse all calculators on NetGrow.