Commission Calculator
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What Your Result Means
- Commission Earned: The flat percentage of your total sales volume, before any bonus. This is the baseline variable pay most commission plans start with.
- Bonus Earned: The additional payout on sales above the bonus threshold at the accelerated bonus rate. Zero if your sales didn't reach the threshold.
- Total Earnings: Base salary plus commission plus bonus — your full compensation for the period.
- Effective Rate: Total variable pay (commission + bonus) as a percentage of sales. This tells you how many cents of every sales dollar you actually keep, which rises as you exceed the bonus threshold.
How This Calculator Works
You enter your total sales, base commission rate, optional base salary, a bonus threshold, and a bonus rate. The tool multiplies total sales by the commission rate for the base commission. If sales exceed the threshold, it applies the bonus rate to the overage. It then adds base salary, commission, and bonus for total earnings and divides variable pay by sales for the effective rate. It models a simple flat + threshold-bonus structure — tiered, draw, or gross-margin-based plans may differ.
Quick Questions
What is a typical commission rate?
It varies widely by industry. Real estate agents typically earn 2.5–3% of the sale price. SaaS sales reps often earn 8–12% of annual contract value. Retail and insurance may range from 1–15% depending on the product and margin.
How does a bonus threshold work?
A bonus threshold (sometimes called an accelerator) kicks in when you exceed a target. Sales below the threshold earn the base rate; sales above it earn a higher bonus rate on the overage. It's designed to incentivize above-quota performance.
What's the difference between OTE and this result?
OTE (On-Target Earnings) is what you'd earn if you hit 100% of quota. This calculator shows what you actually earn at whatever sales level you enter — which could be above or below quota. Compare the two to see how you're tracking.
Does this account for draws or clawbacks?
No. Recoverable draws (advances against future commission), clawbacks for refunded deals, split commissions, and gross-margin adjustments are not modeled. Check your plan document for these details.
Sources
- Bureau of Labor Statistics — Sales Occupations (compensation benchmarks by role)
- DOL — Fact Sheet on Commission Pay (wage and hour rules for commissioned employees)
Method & review
Estimate only. Results reflect your inputs and standard formulas. Double-check important decisions independently.