FREE TOOL · PAY
Sales Commission Calculator
Work out your commission on any sale. Pick how your plan pays: one flat rate, tiered rates, base plus commission, or OTE against a quota.
Example numbers are filled in. Replace them with yours.
- Sales
- $25,000.00
- Commission rate
- 10%
- Commission
- $2,500.00
How this sales commission calculator works
Flat rate: sales times your rate. Base + commission: your base pay for the period plus sales times your rate. Tiered rates: each rate applies only to the sales inside its band, then the bands are added together.
OTE: your variable pay is OTE minus base. Divide it by quota to get the commission rate your plan implies, then slide attainment up and down to see what a short or a big year pays.
Read your plan before you count the money
Plans differ on what counts as a sale (booked, paid or delivered), when commission is paid, and whether it can be taken back if a customer cancels. If you are weighing a new job, our guide to the questions to ask before you switch into sales covers what to get in writing.
Read next
- What is high-ticket sales?
- How much do car salesmen make?
- Before you switch careers into sales, ask these 7 questions
Frequently asked questions
How do you calculate sales commission?
Multiply the sales amount by the commission rate. A 10% rate on a $25,000 sale is $2,500. If your plan has a base salary, add the base to get total pay. Tiered plans apply each rate only to the sales inside its band.
What is the difference between flat and tiered commission?
A flat plan pays one rate on every dollar. A tiered plan raises the rate as you sell more, for example 5% on the first $20,000 and 8% on the next $30,000. In this calculator each tier rate applies only to the sales inside that tier, the way tax brackets work.
What does OTE mean in sales?
OTE stands for on-target earnings: your base salary plus the commission you earn if you hit 100% of quota. A $60,000 base with a $120,000 OTE means $60,000 of commission is on the table at full quota.
How do I find my commission rate from OTE and quota?
Divide the variable part of your OTE by your quota. With $60,000 of variable pay on a $600,000 quota, the implied rate is 10% of what you sell.
Does this calculator include taxes?
No. It shows commission before taxes and deductions. Commission is usually taxed as supplemental wages, so the amount on your check will be lower.
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