The calculation, without hidden assumptions
Commission plans are easy to misread when a higher rate applies only to the slice of sales above a threshold. This calculator supports both a simple percentage and a progressive tier structure. It can use revenue or modeled gross profit as the commission base, and it shows the effective commission rate after tiering so the result can be checked against a compensation plan.
How to use this calculator
Choose simple or progressive tiered commission.
Choose whether commission is based on revenue or modeled gross profit; enter cost of goods only when using gross-profit basis.
For tiered mode, enter increasing threshold limits and the rate applied within each band, then compare commission with the effective rate.
Where people use it
- •Checking a sales compensation statement
- •Modeling a progressive commission plan
- •Comparing revenue-based and gross-profit-based commission structures
Example: progressive tiers
If the first 20,000 earns 3%, the next 5,000 earns 5%, and the remaining 2,000 earns 10%, a 27,000 commission base earns 600 + 250 + 200 = 1,050 before any base pay.
What the result does not assume
- •Real plans can include quotas, accelerators, caps, clawbacks, product-specific rates, timing rules and exclusions that are not inferred here.
- •Use the written compensation plan as the authoritative definition of commissionable revenue or profit.
Frequently asked questions
Does a 10% top tier mean all sales earn 10%?+
Not in progressive mode. Only the amount inside the top tier uses that rate; lower bands keep their own rates.
Can commission be based on gross profit instead of revenue?+
Yes. Select gross-profit basis and enter modeled cost of goods; the calculator uses revenue minus that cost as the commission base.
Can I include salary or base pay?+
Yes. Base pay is added after the commission calculation for the modeled period.
Semantic next steps
Continue the calculation
These links move to a different input, formula or project stage rather than a keyword variation of this page.
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MAXScanner keeps the formula and assumptions beside the result so you can verify the number before using it in a drawing, estimate, specification, worksheet or document. Where a supplier, manufacturer, drawing or applicable standard owns a requirement, that source remains authoritative.