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🤝 Commission Calculator
Work out sales commission earned, with an optional higher rate above a target tier.
About this Commission Calculator
This commission calculator works out exactly what a salesperson earns on a sales amount, at a flat percentage or with a two-tier structure where sales above a target earn a higher rate — a common way to reward staff who beat their target. It also shows the effective rate, so managers and staff can check payslips and agreements at a glance.
How to use it
- Enter the total sales the commission is based on.
- Enter the base commission percentage.
- If your scheme rewards extra sales, enter the tier threshold and the higher tier rate.
- Click Calculate to see the commission earned and the effective rate.
Example
Sales of 500,000 at a 5% base rate earn 25,000; with a tier of 8% above 300,000 the same sales earn 15,000 plus 16,000 — a total of 31,000.
Frequently asked questions
How does the tier calculation work?
Sales up to the threshold earn the base rate, and only the part above the threshold earns the tier rate. It is not the higher rate on the whole amount.
Is commission usually paid on sales or on profit?
Most simple schemes pay on sales value; some businesses pay on collected payments or gross profit instead. Check your agreement — this calculator uses the sales amount you enter.
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