Guide

How to calculate sales commission

Commission is a percentage of the sales credit a rep earns in a period. The rules on top — tiers, quotas, splits, refunds — are what make it hard. Here is each one with real numbers.

1. Flat-rate commission

The simplest plan: one rate on everything the rep sells.

commission = sales credit × rate
$48,000 × 8% = $3,840

2. Tiered commission

The rate rises as the rep sells more. In a marginal plan, each slice earns its own rate:

Slice of creditRateCommission
$0 – $50,0005%$2,500
$50,000 – $100,0008%$4,000
$100,000 – $200,00012%$12,000
Total on $200,000$18,500

In a retroactive plan, reaching the 12% tier pays 12% on the whole $200,000 — $24,000. The difference is large, so make sure your plan document says which one you use. Try the tiered calculator →

3. Quota and accelerators

Accelerators reward over-performance: sales above quota earn a multiplied rate.

Quota $1,000,000 · base rate 8% · accelerator 1.5× · sold $1,400,000
$1,000,000 × 8% = $80,000
$400,000 × (8% × 1.5 = 12%) = $48,000
Total = $128,000

4. Split deals

When two reps work a deal, credit is split by percentage before any rate is applied. A $32,000 deal split 70/30 credits $22,400 to one rep and $9,600 to the other. Each rep's tiers and quota then apply to their own credit. Splits must add up to exactly 100%.

5. Refunds and clawbacks

If a customer refunds within the clawback window (often 60–90 days), the deal's credit is deducted in the period of the refund. How clawbacks work →

Putting it together for a whole team

Doing this by hand for one rep is fine. For 20 reps with tiers, splits and refunds every month, it is where spreadsheet errors creep in. The calculator applies all five rules from a CSV export and gives each rep a statement showing every deal and every slice.

Calculate your team's commissions

Upload a CSV or start with sample data. Runs in your browser — your data never leaves this computer.

Open the calculator