Sales Commission Calculator
Model flat, graduated, retroactive, threshold and margin-based commission plans — with accelerators, kickers, quota attainment, splits, clawbacks, draws and OTE. Every number shows its work.
01. Build your commission structure
Start from a preset or dial in your own plan. Everything recalculates live.
02. How this number was calculated
03. Where every dollar came from
| Bracket | Rate | Base | Commission |
|---|
04. Drag attainment, watch the curve
Move the slider to see what you earn at any quota attainment. The curve steepens wherever accelerators kick in.
05. Step-by-step calculations
Graduated tiers on $40,000 TIERED
Tiers: 5% to $10,000 · 7% to $25,000 · 10% above. Each rate applies only inside its bracket.
| Bracket 1: $10,000 × 5% | $500 |
| Bracket 2: $15,000 × 7% | $1,050 |
| Bracket 3: $15,000 × 10% | $1,500 |
| Total commission | $3,050 |
Retroactive tiers on the same $40,000 RETROACTIVE
Same tiers, but the highest rate reached applies to every dollar from the first. The $40,000 lands in the 10% bracket.
| Highest bracket reached: 10% | — |
| $40,000 × 10% on all sales | $4,000 |
| Total commission (vs $3,050 graduated) | $4,000 |
SaaS AE: quota, accelerator & OTE OTE
$800,000 quota · $95,000 base · 8% flat · 12% accelerator above 100% · $960,000 closed (120% attainment).
| Base commission: $960,000 × 8% | $76,800 |
| Accelerator: ($960,000 − $800,000) × 12% | $19,200 |
| Total commission | $96,000 |
| Total earnings: $95,000 + $96,000 | $191,000 |
| OTE at 100%: $95,000 + ($800,000 × 8%) | $159,000 |
| Effective rate: $96,000 ÷ $960,000 | 10.00% |
06. The formulas this calculator uses
Tier brackets are half-open intervals: a sale of exactly $25,000 sits in the “up to $25,000” bracket. All money math runs in full floating-point precision and is rounded only for display.
07. Typical commission rates by industry
Reported typical ranges — useful as a starting point when you sanity-check a plan. Higher rates usually pair with lower base salaries.
| Industry / role | Typical rate | Notes |
|---|---|---|
| SaaS — new business | 8–12% of contract value | Accelerators of 1.5–2x above quota are standard |
| SaaS — renewals / expansion | 1–8% | Renewals at the low end, expansion in the middle |
| Real estate | 5–6% total | Split between sides, then agent/broker splits of 60/40 to 90/10 |
| Car sales | 20–30% of front gross | Paid after pack fee; often plus a monthly draw |
| Insurance — health | 10–25% first year | Renewals typically 5–15% |
| Insurance — life | 40–90% first year | High upfront, small renewal trail |
| Retail / inside sales | 1–10% | Usually paired with a solid base salary |
| Manufacturing reps | 7–15% of sales | Or 20–40% of gross margin |
08. Sales commission questions, answered
Multiply the commissionable sales amount by the commission rate: Commission = Sales x Rate. For example, $50,000 in sales at a 10% rate pays $5,000. If you have a base salary, add it: Total earnings = Base salary + Commission. Tiered plans, accelerators, splits, and clawbacks all modify this base result before it becomes your payout.
Split total sales into the plan's brackets, multiply each bracket's portion by its own rate, then add the results. Example on $40,000 with tiers of 5% to $10,000, 7% to $25,000, and 10% above: $10,000 x 5% = $500, plus $15,000 x 7% = $1,050, plus $15,000 x 10% = $1,500, for a total of $3,050. The key mistake to avoid is applying the top rate to all sales.
Graduated (marginal) tiers pay each rate only on the sales inside its bracket. Retroactive tiers apply the highest rate you reached to every dollar from the first. On $40,000 with 5%/7%/10% tiers, graduated pays $3,050 while retroactive pays $40,000 x 10% = $4,000. Retroactive plans create a sharper incentive to cross each threshold but cost the company more.
OTE (on-target earnings) is the total pay you earn at exactly 100% of quota: OTE = Base salary + Commission at 100% quota. Example: a $60,000 base with 8% commission on a $625,000 quota gives $50,000 variable at target, so OTE is $110,000. OTE is a target, not a guarantee — ask what share of the team actually hits quota before judging an offer by its OTE.
An accelerator raises your commission rate on sales above quota. The standard formula is Commission = (Quota x Base rate) + (Sales above quota x Accelerated rate). A common SaaS setup pays 1.5x the base rate from 100-120% of quota and 2x above 120%. This calculator models accelerators as an extra rate on attainment above a threshold you set.
A clawback reverses commission already paid when the underlying sale disappears — typically a customer cancellation, refund, or unpaid invoice within a defined window (often 30-90 days). It can be full or proportional to the refunded amount. Enter an expected clawback in the calculator to see net commission after reversals.
A draw is an advance paid each period and then subtracted from earned commission: Payout = max(Commission - Draw, 0). With a recoverable draw, any shortfall becomes debt carried against future commissions. With a non-recoverable draw, it is a guaranteed minimum — you keep the higher of the draw or your commission. This calculator floors the payout at zero and shows any remaining draw balance.
Each party's share = Total commission x Split percentage. A 70/30 split on a $10,000 commission pays $7,000 and $3,000. Real estate commonly uses 60/40 to 90/10 agent/broker splits, and SaaS teams often split deals 60/40 or 70/30 between the closer and supporting roles. Enter your share percentage in the calculator to see your take-home.
Typical ranges vary widely by industry: SaaS new business 8-12% of contract value, real estate about 5-6% total (roughly 2.5-3% per side), car sales 20-30% of front-end gross profit, and insurance 10-25% first-year on health or 40-90% on life policies. Higher rates usually pair with lower or zero base salary. Use the industry benchmarks on this page as a starting point, then verify against real comp plans.
Capped plans stop commission at a ceiling, which keeps company costs predictable but can demotivate top performers. Uncapped plans let earnings scale with sales, which attracts high achievers. Many companies use a hybrid: a cap on base commission with accelerators above quota. Enter an optional cap in this calculator to model a capped plan.
Commission = Sale price x Commission rate, then split. On a $450,000 sale at 3% one side, total commission is $13,500; at an 80/20 agent/broker split the agent keeps $10,800. The total rate is usually divided between the listing and buyer sides first, then each side splits with its brokerage. Use the Real Estate preset to model this.
Most dealerships pay a percentage of front-end gross profit after a 'pack' fee: Commission = (Gross profit - Pack) x Rate. Example: $2,000 gross minus a $500 pack at 25% = $375 per car. Many dealers also pay a monthly draw against commission and small flat bonuses per unit. Use the Car Sales preset, which models the draw and flat-rate structure.
Revenue-based commission rewards volume and is simple to administer, but it encourages discounting since the rep keeps the same rate on a discounted deal. Margin-based commission (Commission = (Revenue - Cost) x Rate) protects profitability and aligns the rep with the company's bottom line. Switch this calculator to Margin mode to compare both on your own numbers.
No — these are estimates for planning and offer comparison. Real payouts depend on your written comp plan: what counts as commissionable (bookings vs. collections), splits, caps, clawback windows, and taxes, which vary by jurisdiction. Always verify against your plan document before payroll.