Calculate sales commission using flat, tiered, or graduated rate structures with base salary
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Working on commission? Our calculator supports flat rates, tiered structures, and graduated commission plans. Add your base salary to see total earnings and effective commission rate on any sales amount.
Commission is performance-based pay calculated as a percentage of sales. Flat rate applies one percentage to all sales. Tiered pays a higher rate once you hit thresholds (all sales at that rate). Graduated pays different rates for each portion of sales (like tax brackets).
Basic Commission Formula
Commission = Sales Amount × Commission RateCalculate earnings on potential sales.
Compare compensation packages across roles.
Determine sales needed to hit income goals.
Tiered applies one rate to ALL sales once you reach a threshold. Graduated applies different rates to different portions—like earning 5% on first $10K, 7.5% on next $15K. Graduated usually pays less overall.
Varies widely by industry: retail 1-5%, real estate 3-6%, software sales 5-15%, car sales 20-25% of profit. Higher rates often mean lower or no base salary.
High commission rewards top performers but carries income risk. High base provides stability but caps upside. Consider your sales ability, market conditions, and financial needs.
Commission is regular income, taxed the same as salary. However, employers often withhold at a higher supplemental rate (22% federal), so you may get some back at tax time.