Commission Calculator
Flat, tiered marginal or retroactive commission, with splits and base pay.
About this tool
Enter the sales amount and choose the structure: a flat percentage; tiered marginal, where each band pays its own rate; or tiered retroactive, where crossing a threshold re-rates the whole amount. Add your share of a split and any base pay to see total pay and the effective rate.
Reading a commission plan
The word 'tiered' hides two very different plans. Marginal tiers work like tax brackets: the first 10,000 pays 3%, the next 20,000 pays 5%, and so on, so passing a threshold changes only the rate on the extra. Retroactive (cliff) tiers re-rate everything once a threshold is passed, so 29,900 in sales at 5% becomes 30,000 at 8% โ a difference of hundreds for closing a 100 deal, which is exactly the behaviour the plan wants. Plans also differ on the base: commission on revenue, on gross margin, or on collected cash, and on when it is paid. The calculator does the arithmetic for any of these once you enter the numbers from your plan document; it cannot read the plan for you. General information, not financial advice. The percentage calculator handles a quick single rate, the margin calculator finds the margin a plan is based on, and the freelance rate calculator is the equivalent sum for contractors.
Frequently asked questions
What is the difference between marginal and retroactive tiers?
Marginal pays each band at its own rate (like tax brackets). Retroactive pays the whole amount at the rate of the highest band reached. The tool shows both so you can see which your plan means.
How do I enter the tiers?
One per line: 'up to 10000: 3%', 'up to 30000: 5%', then 'above: 8%'. Amounts are the upper limit of each band.
What is a split?
Your percentage of the commission when a deal is shared or an agency takes a cut. Enter 50 for an even split; 100 if it is all yours.
Is commission on revenue or profit?
Depends on the plan. If yours is on margin, enter the margin amount as the sales figure.