Commission Calculator

This Commission Calculator helps sales professionals and businesses calculate earnings under different commission structures:

• Flat rate commission
• Tiered commission rates
• Graduated commission rates
• Draw against commission

How to Use

1. Select your commission structure:

   • Flat Rate: Simple percentage of sales
   • Tiered: Different rates for different sales levels
   • Graduated: Single rate based on total sales
   • Draw: Commission with guaranteed draw

2. Choose the calculation period:

   • Monthly
   • Quarterly
   • Annually

3. Enter your sales and compensation details:

   • Sales amount
   • Commission rate (for flat rate)
   • Base salary (if applicable)
   • Draw amount (for draw against commission)

4. Click “Calculate Commission” to see your results

Commission Structures Explained

Flat Rate Commission

• Simplest form of commission
• Fixed percentage of all sales
• Example: 5% of all sales

Tiered Commission

• Different rates for different sales levels
• Higher rates for higher sales tiers
• Example:
  • $0-$5,000: 2%
  • $5,001-$10,000: 4%
  • $10,001-$25,000: 6%
  • $25,001-$50,000: 8%
  • $50,001+: 10%

Graduated Commission

• Single rate based on total sales
• Rate increases as total sales increase
• Applied to entire sales amount
• Uses same tiers as tiered commission

Draw Against Commission

• Guaranteed minimum payment (draw)
• Balanced against earned commissions
• Can be recoverable or non-recoverable
• Helps provide stable income

Understanding Results

• Total Commission: Amount earned from sales
• Base Salary: Fixed compensation
• Total Earnings: Commission plus base salary
• Effective Rate: Actual commission percentage
• Tier Breakdown: Sales and commission by tier
• Draw Schedule: Draw vs. earned commission

Tips for Sales Professionals

1. Track Your Progress: Monitor your sales against tier thresholds
2. Understand Your Structure: Know how different sales levels affect your commission
3. Plan for Draw Recovery: If using draw, understand how it affects future earnings
4. Consider Timing: Some sales may be better closed in specific periods
5. Keep Records: Document all sales and commission calculations

Common Uses

• Sales team compensation
• Real estate agent commissions
• Insurance agent earnings
• Retail sales incentives
• Financial advisor compensation
• Recruitment agency fees