Commission Calculator
Calculate sales commissions with our free online calculator. Support for percentage, flat fee, and tiered commission structures to help sales professionals determine earnings.
Category: Financial
Frequently Asked Questions
What is a sales commission?
A sales commission is a form of payment to a salesperson for generating a sale. It's typically calculated as a percentage of the sale amount, though it can also include fixed amounts or use tiered structures where rates change based on sales volume.
What are the different types of commission structures?
The main commission structures include: 1) Straight percentage - a fixed percentage of each sale, 2) Tiered commission - different rates at different sales volumes, 3) Draw against commission - an advance against future commissions, 4) Base salary plus commission - combining fixed income with performance-based earnings, and 5) Bonus commission - additional payments for reaching targets.
How do tiered commission structures work?
In a tiered commission structure, different commission rates apply to different levels of sales. For example, a salesperson might earn 3% on the first $10,000 in sales, 5% on sales between $10,000 and $25,000, and 7% on all sales above $25,000. This incentivizes higher sales volumes as the commission rate increases.