Compute commission from sales price and rate (or find missing value).
Define base commission, tiered structure, and sales price.
Define tiers (leave "To" blank for no upper limit):
| From | To | Commission | Unit |
|---|
In sales, a commission is a form of payment tied to how much a salesperson sells. It's a motivational tool because earnings scale directly with performance.
A simple commission is a percentage of revenue. For example, a 3% commission on a $100 sale yields $3. However, many structures exist:
Formula: sale price × commission percentage = compensation
Example: A real estate agent sells a house for $500,000 at 3% commission → 500,000 × 0.03 = $15,000.
Formula: base salary + (total sales × commission percentage) = total compensation
Example: $500 base + 1.5% on a $25,000 car → 500 + (25,000 × 0.015) = $875. If two cars are sold at the same price: 500 + (50,000 × 0.015) = $1,250.
In a tiered structure, different commission rates apply to different portions of sales. For example:
A $27,000 sale would earn: (20,000 × 0.03) + (5,000 × 0.05) + (2,000 × 0.10) = $600 + $250 + $200 = $1,050.
Formula: (t₁ × c₁) + ((t₂ - t₁) × c₂) + ... + ((sale price - tₙ₋₁) × cₙ)
Where t represents the tier thresholds and c the corresponding commission rates.