💰 Commission Calculator – Simple, Tiered & Base + Commission

📊 Simple Percentage Commission

Compute commission from sales price and rate (or find missing value).

🧩 Tiered / Base + Commission Calculator

Define base commission, tiered structure, and sales price.

Define tiers (leave "To" blank for no upper limit):

FromToCommissionUnit

📘 What is a Commission?

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:

  • Commission only: The salesperson earns a percentage of sales with no base salary.
  • Base salary + commission: A fixed base salary plus a commission on sales.
  • Tiered commission: The commission rate increases as sales volume grows. For example, 3% on the first $20k, 5% on the next $5k, and 10% above that.

Commission only structure

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.

Base salary plus commission

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.

Tiered commission structure

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.