Free commission economics tool
Sales Commission Plan Calculator
Calculate sales commission payout, accelerator economics, effective commission rate, rep compensation and company contribution after sales compensation.
Simple calculator
Marginal acceleratorEnter quota, sales and commission rates
Sales performance
Commission plan
Marginal acceleratorThe base rate applies up to the accelerator threshold. The accelerated rate applies only to the dollars above that threshold. The calculator does not retroactively re-rate all prior sales.
Advanced calculator
Marginal tieringBuild a tiered commission plan
Sales economics
Accelerator tiers
TierAttainment bandCommission rate
Tier 10% to 100%
%
Tier 2100% to 125%
%
Tier 3125% to 150%
%
Tier 4Above 150%
%
Bonuses, caps & leakage
Rep compensation & company economics
Tier mechanicsEach commission rate applies only to the incremental commission basis inside that attainment band. Bonuses trigger when the attainment threshold is reached. Leakage reduces the gross commission calculation before any optional payout cap is applied.
Commission bridge
Marginal rates, not retroactivePayout by accelerator tier
| Component | Attainment band | Commission basis | Rate | Commission |
|---|
Payout curve
Current plan assumptionsCommission payout at different quota attainment levels
| Quota attainment | Credited sales | Commission payout | Effective commission rate | Total rep comp | Company contribution |
|---|
Margin sensitivity
Sales and commission plan held constantCompany contribution at different gross margins
| Gross margin | Gross profit | Commission payout | Total sales comp cost | Company contribution | Contribution margin |
|---|
Rate sensitivity
All accelerator rates shifted togetherCompany economics as accelerator rates change
| Rate change | Tier 1 | Tier 2 | Tier 3 | Tier 4 | Commission payout | Company contribution margin |
|---|
Scope
Commission plan economics are not compensation-plan legal review
This calculator models commission economics from the assumptions entered. It does not determine whether a compensation plan complies with wage-payment law, commission-agreement requirements, overtime rules, draw treatment, termination provisions, clawback enforceability, tax withholding rules or other employment requirements. The company contribution output is a planning contribution measure and does not include all fixed overhead, taxes or corporate expenses.
