Sales commission calculator
This free sales commission calculator lets you easily calculate commission for any structure. Enter your sales amount, commission rate, and base salary to see total compensation and payout instantly.
Results
Total commission
Total compensation
base + commission
Effective rate
commission / deal value
Compensation breakdown
Flat rate: a fixed percentage applied to every dollar of revenue. Simple and predictable.
How to calculate sales commission
Flat rate commission
The simplest structure. Every dollar of revenue earns the same commission percentage. Most companies starting their first outbound program use flat rate because it's easy to explain and predict.
Formula
Commission = Deal Value × Rate
Example: $100,000 × 10% = $10,000
Tiered / graduated commission
Revenue gets split into brackets, and each bracket pays a different rate. Think of it like income tax: you don't pay the highest rate on every dollar, only on dollars above each threshold. This rewards reps who push past their comfort zone without overpaying on early deals.
Example brackets
On $75,000 revenue: ($25k × 10%) + ($25k × 15%) + ($25k × 20%) = $11,250
Accelerator-based commission
The base rate applies until the rep hits quota. After that, a multiplier kicks in. This creates disproportionate upside for top performers. Companies use accelerators when they want their best reps to stay rather than jump ship.
Example with $500k quota, 10% base rate
At $750k (150%): $500k × 10% + $250k × 15% = $87,500
Draw against commission
The company pays a guaranteed monthly amount (the draw) regardless of performance. When commission exceeds the draw, the rep keeps the difference. When it doesn't, the deficit either carries forward (recoverable) or gets written off (non-recoverable). Draws are common during ramp-up periods.
Formula
Net = Earned Commission − Draw
$3,000/mo draw, $5,000 earned: rep keeps $2,000 surplus
Typical sales commission rates by role and deal type
Commission rates vary more by deal type than by role. Enterprise AEs with $500K+ ACV deals earn lower percentages than SMB AEs closing $10K contracts because the absolute commission per deal is still larger. Use the ranges below as a starting point when designing a comp plan or evaluating an offer. Actual numbers depend on margin, sales cycle length, and whether the rate is paid on booking, billing, or collected revenue.
Commission ranges by role and deal type (B2B SaaS)
Two adjustments matter before applying these rates. First, if your plan includes accelerators above 100% quota, dial the base rate down slightly — the upside carries the motivation. Second, if your sales cycle is longer than six months, pay on booking rather than collected revenue, or reps will quit before they see their commission. Use the calculator above to model how each rate plays out against your specific deal sizes and quotas.
Choosing the right commission structure
Different commission structures motivate different behaviors. The calculation you pick shapes how your sales team performs against sales targets and how much each salesperson takes home in variable pay. A commission calculator helps sales leaders model these scenarios before committing to compensation plans.
Flat rate works when every sale price carries similar margins. The salesperson earns a fixed percentage of the sales amount regardless of volume. For SaaS companies where deal sizes vary wildly, tiered commission structures align payout with sales performance — the commission rate increases as total sales climb past each threshold. The commission amount a rep earns depends on which bracket their revenue falls in.
Accelerators reward overperformance. The base commission stays the same until the sales rep hits quota, then commission earned above quota multiplies. This is the most common commission structure for enterprise sales teams chasing aggressive sales targets. Commission calculations get complex with multiple tiers, which is why a commission rate calculator saves hours of manual work on a spreadsheet.
Whichever structure you choose, the formula for calculating commission payout should be transparent. Sales compensation works best when every salesperson on the team can quickly determine their commission amount based on the percentage of revenue they close. Use the calculator above to model different commission rates and see how each structure affects total compensation — including base salary plus commission and any bonus incentives.
Commission calculator FAQ
How do you calculate sales commission?
Multiply the deal value (or revenue) by the commission rate. For a $50,000 deal at 10%, the commission is $5,000. This is the flat rate method. Tiered structures apply different rates at different revenue brackets, and accelerators increase the rate when reps exceed their quota.
What is a typical sales commission rate?
Most B2B SaaS companies pay between 8% and 12% commission on closed-won revenue. Enterprise sales with longer cycles tend toward 8-10%. Inside sales and SMB deals often pay 10-15%. The rate depends on base salary, deal size, and sales cycle length.
What is tiered or graduated commission?
Tiered commission applies progressively higher rates as revenue increases. For example: 10% on the first $25,000, 15% on $25,001-$50,000, and 20% on everything above $50,000. The rep earns more per dollar at higher revenue levels. This motivates reps to push past comfortable numbers.
How do accelerators work in a commission plan?
Accelerators multiply the base commission rate when a rep exceeds their quota. If quota is $500,000 and the base rate is 10%, a rep who closes $600,000 (120% attainment) might earn 1.5x the rate on everything above quota. At 150%+ attainment, the multiplier often jumps to 2x. This rewards overperformance disproportionately.
What is a draw against commission?
A draw is a guaranteed monthly payment advanced to the rep. If the draw is $3,000/month and the rep earns $5,000 in commission, they keep the $2,000 difference. If they only earn $2,000, they owe the company $1,000 (recoverable draw) or the company absorbs the loss (non-recoverable draw). Draws protect reps during ramp-up or slow periods.
What is OTE (on-target earnings)?
OTE is base salary plus commission at 100% quota attainment. If base salary is $60,000 and expected commission at quota is $40,000, OTE is $100,000. Most companies target a 50/50 to 60/40 base-to-variable split for account executives. SDRs typically see 60/40 to 70/30 splits.
What is the difference between commission and bonus?
Commission is a percentage of revenue directly tied to performance — it scales linearly with what the salesperson closes. A bonus is a fixed payment for hitting a milestone (quota, certification, quarterly goal). Commission rewards ongoing revenue; bonuses reward specific outcomes. Most B2B sales comp plans use both: commission on every deal plus a bonus for hitting quota or bringing in a strategic logo.
What is a clawback in sales commission?
A clawback is a provision that requires a rep to return commission earned if the customer churns, refunds, or fails to pay within a defined window. Typical clawback periods are 90 to 180 days after the deal closes. Some companies use a reserve model instead — holding back a portion of commission until the customer passes the clawback window. Clawbacks protect the company from paying on revenue that never materialized, especially for SaaS deals with short onboarding.
Should sales commission be paid monthly or quarterly?
Monthly payments improve rep cash flow and motivation but create admin overhead for finance. Quarterly payments reduce admin but delay rewards by up to 90 days. Most companies pay commission in the month following the deal close if booking is confirmed, then true up quarterly to correct overpayments or clawbacks. Public companies often prefer quarterly to align with reporting cycles. Earlier-stage startups default to monthly to keep reps motivated.
What is a SPIFF in sales compensation?
A SPIFF (Sales Performance Incentive Fund) is a short-term bonus paid on top of regular commission to push a specific behavior — selling a new product, closing before quarter-end, or displacing a competitor. SPIFFs work best in 30-90 day windows. Longer than that, they become baseline expectation and lose motivational power. Common SPIFF structures include a flat cash bonus per qualifying deal, a multiplier on commission rate, or a prize for the top rep.
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