Free Online Calculator

Commission Calculator

Calculate sales commission with an optional higher rate above a target.

Last updated: Free, no sign-up Private — runs in your browser

Quick answer: how to calculate commission

Commission = sales × rate. With ₹5,00,000 in sales at 5% up to a ₹3,00,000 target and 8% above it, commission is ₹31,000.00.

Overview of the Commission Calculator

Commission pays salespeople a percentage of what they sell. This calculator handles a flat rate and a tiered plan with a higher rate once you pass a target. Add a fixed base salary to see total earnings and your effective commission rate.

Check your plan: some commissions are paid on revenue, others on profit, and tiers may apply to the whole amount or only the excess. This calculator applies the higher rate only to sales above the target. See also the Margin Calculator and the Salary Calculator.

How We Calculate

The calculator applies the standard financial formulas step by step.

  1. Commission on sales up to the target = sales × base rate.
  2. Commission above the target = (sales − target) × higher rate.
  3. Total commission = the two added together.
  4. Total earnings = commission + any base salary.
commission = min(sales, target) × rate₁ + max(0, sales − target) × rate₂
Worked example — commission calculator
ItemValue
Total sales₹5,00,000.00
Commission up to target₹15,000.00
Commission above target₹16,000.00
Total commission₹31,000.00
Base salary₹20,000.00
Total earnings₹51,000.00
Commission at different sales levels
SalesCommission
₹2,00,000 sales, 5% flat₹10,000.00
₹3,00,000 sales, at target₹15,000.00
₹5,00,000 sales, tiered₹31,000.00
₹8,00,000 sales, tiered₹55,000.00
₹10,00,000 sales, tiered₹71,000.00

Commission Calculator — Frequently Asked Questions

How is commission calculated?

Multiply sales by the commission rate. With tiers, each slice of sales is multiplied by its own rate.

What is a tiered commission?

A plan that pays a higher rate on sales above a target, rewarding top performance.

Is commission paid on revenue or profit?

It depends on your plan. Some pay on gross revenue, others on profit or margin. Check your agreement.

What is an effective commission rate?

Total commission divided by total sales — useful when tiers make the rate vary.

Does the higher rate apply to all sales or only the excess?

This calculator applies it only to sales above the target (marginal). Some plans apply it to everything — check yours.

How much do I need to sell to hit an income goal?

Subtract base salary from your goal and divide by the commission rate.

How is the commission calculator calculated?

It uses the standard formula: commission = min(sales, target) × rate₁ + max(0, sales − target) × rate₂ The full method and a worked example are shown on this page.

Is this financial advice?

No. The calculator gives estimates for planning and learning. Real offers vary by lender, product and date, so confirm the details with your bank, lender or a qualified adviser before deciding.

Can I use another currency?

Yes. The maths is identical in any currency; only the currency symbol shown in the results differs.

Is my data stored?

No. Everything is calculated in your browser and nothing you enter is uploaded or saved.

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