How do progressive commission tiers work?

Each rate applies only to sales inside its band. Reaching a higher tier does not retroactively change commission on lower bands.

You are paid 3% commission on the first $100,000 of monthly sales and 5% on sales above that. What do you earn on $150,000?

$5,500. The first $100,000 earns 3%, which is $3,000, and the remaining $50,000 earns 5%, which is $2,500, so $3,000 + $2,500 = $5,500. To check it here, choose progressive tiers and enter 0 to 100,000 at 3%, then 100,000 with no upper limit at 5%.

You make 4% commission on the first $10,000 of monthly sales and 10% on sales above that. What is the commission on $25,000?

$1,900. 4% of the first $10,000 is $400, and 10% of the remaining $15,000 is $1,500, so $400 + $1,500 = $1,900. That is an effective rate of 7.6% across all $25,000.

Can I model an all-sales accelerator plan?

Not in this version. Retroactive rates, caps, draws and clawbacks require different formulas and should be calculated from the plan document.

Why must tiers be contiguous?

A gap would leave some sales without a rate, while an overlap would pay the same sales twice. The row validator requires each tier to begin at the prior upper bound.

Does commission determine overtime eligibility?

No. Employment classification, industry and legal tests control eligibility. This tool only calculates the commission schedule entered.

Commission Calculator

Calculate commission for a flat-rate or progressive tiered plan.

Built by AbhiLast reviewed September 26, 2026

Result

Commission: $6,000.00Estimate

Estimated commission follows only the flat rate or progressive tiers entered here.

Gross period pay: $8,000.00Estimate
Effective commission rate: 5%
Base pay: $2,000.00
Other gross pay: $0.00

Report a problem with this calculator

https://calcgallery.com/salary/commission-calculator/

Pay results are arithmetic estimates based on the values you enter. Employment terms, payroll policy, tax rules and local law control actual pay. Confirm important figures with your employer, payroll team or qualified adviser. Read the full disclaimer

How to use the Commission Calculator

Enter commissionable sales for one consistent plan period.
Choose a flat rate or add ordered, contiguous progressive tiers.
Enter base and other gross pay for the same period to see total gross pay.

Flat rate and progressive tiers

Flat-rate commission is commissionable sales multiplied by one percentage. Progressive mode divides sales into bands and applies each band’s rate only to the portion inside that band.

progressive commission = sum of sales in each tier × that tier's rate

The final tier may have no upper limit. Every earlier tier needs one, and the next tier must begin at exactly that amount. This keeps the plan unambiguous and prevents gaps or double-counting.

Commissionable sales are plan-defined

Revenue, bookings, collected cash and gross margin are different bases. Enter the amount the compensation plan calls commissionable after returns, exclusions or timing rules have been applied. The calculator does not decide when a sale is credited or whether it later becomes subject to a clawback.

Keep sales, base pay and other pay in the same period. Monthly sales beside an annual base salary will inflate gross period pay. If the base is annual, convert it to the commission period first with the Salary Converter.

What is not represented

This first version supports flat rates and marginal progressive tiers. It excludes draws, recoverable advances, caps, minimum guarantees, retroactive accelerators and plans where achieving a tier applies its rate to all sales. Those features change the formula materially, so forcing them into tier rows would produce a confident but wrong answer.

Commission alone does not determine overtime rights. The US Department of Labor Fact Sheet 20 describes a limited federal exemption for some retail or service employees; other rules and local law may apply. Use the result as pay-plan arithmetic, not a compliance conclusion.

Checking a tiered result

Compare the effective commission rate with the individual tier rates. It normally lies between the lowest and highest rates reached because earlier sales remain in lower bands. A rate outside that range points to a tier boundary or percentage entry that should be reviewed.

Gross period pay adds base pay, commission and other gross pay before deductions. Move the resulting gross figure to the Paycheck Calculator only after obtaining explicit withholding and deduction amounts for the same period.

With your numbers

Progressive tier commission on $120,000.00 = $5,400.00
Effective commission rate = 4.5%
Gross period pay = $2,000.00 + $5,400.00 + $0.00 = $7,400.00

Quick reference

Estimated commission follows only the flat rate or progressive tiers entered here.

Common jobs, worked out with the options this calculator starts on for United States.
Job	Commission
USD 120,000 sales across three progressive tiers	$5,400.00
USD 50,000 sales at 4% flat rate	$2,000.00
USD 10,000 sales at 8% plus base pay	$800.00
EUR 80,000 sales at 5% flat rate	€4,000.00
EUR 100,000 sales across progressive tiers	€4,000.00
EUR 25,000 sales at 3% plus other pay	€750.00
USD 200,000 sales across progressive tiers	$11,000.00
EUR 40,000 sales at 6.5% flat rate	€2,600.00

Common questions about the Commission Calculator

How do progressive commission tiers work?: Each rate applies only to sales inside its band. Reaching a higher tier does not retroactively change commission on lower bands.
You are paid 3% commission on the first $100,000 of monthly sales and 5% on sales above that. What do you earn on $150,000?: $5,500. The first $100,000 earns 3%, which is $3,000, and the remaining $50,000 earns 5%, which is $2,500, so $3,000 + $2,500 = $5,500. To check it here, choose progressive tiers and enter 0 to 100,000 at 3%, then 100,000 with no upper limit at 5%.
You make 4% commission on the first $10,000 of monthly sales and 10% on sales above that. What is the commission on $25,000?: $1,900. 4% of the first $10,000 is $400, and 10% of the remaining $15,000 is $1,500, so $400 + $1,500 = $1,900. That is an effective rate of 7.6% across all $25,000.
Can I model an all-sales accelerator plan?: Not in this version. Retroactive rates, caps, draws and clawbacks require different formulas and should be calculated from the plan document.
Why must tiers be contiguous?: A gap would leave some sales without a rate, while an overlap would pay the same sales twice. The row validator requires each tier to begin at the prior upper bound.
Does commission determine overtime eligibility?: No. Employment classification, industry and legal tests control eligibility. This tool only calculates the commission schedule entered.