Commission Calculator

1. Enter the total sales and commission rate.
2. Optionally add base pay for the period and commission starts above (quota) — leave blank to skip.
3. Read the highlighted result first, then the breakdown below it. Load the worked example to check the math by hand.

Commission is a percentage of the sales that qualify. With a quota, only sales above the threshold count.

• Commissionable sales = max(0, sales − quota)
• Commission = commissionable sales × rate ÷ 100
• Total pay = base pay + commission

Commission earned is the variable part of pay for the period; total pay adds your base. The effective rate shows commission as a share of all sales after any quota.

Common mistakes and assumptions

• Assuming a quota plan pays on all sales.
• Ignoring chargebacks or returns.
• Using a single rate for tiered plans.

$50,000 in monthly sales at 5%, with a $2,000 base and no quota.

1. 1Commission = 50,000 × 0.05 = $2,500.
2. 2Total pay = 2,000 + 2,500 = $4,500.
3. 3With a $20,000 quota, commission would be 30,000 × 0.05 = $1,500.

How do I calculate commission?

Multiply the sale amount by the commission rate. A $12,000 sale at 6% earns $720.

How does a quota change commission?

Commission only applies to sales above the quota here. Some plans instead pay on all sales once quota is hit — check your plan wording.

Does this handle tiered rates?

Not directly. For tiers, run each tier’s sales separately and add the commissions.

Is commission taxed differently?

Withholding on supplemental pay can differ by employer and jurisdiction. This calculator shows gross amounts only.