FINANCIAL
Tiered Sales Commission Calculator
Apply marginal tier rates only to the sales in each tier.
Your result
FINANCIALEnter your values and select calculate.
On this page How it works & practical examples
How to use the Tiered Sales Commission Calculator
Apply marginal tier rates only to the sales in each tier. The higher rate is not retroactively applied to all sales.
The calculation
Commission = min(sales,threshold)×first rate + max(0,sales−threshold)×second rate
Worked example
$15,000 sales with 5% on the first $10,000 and 10% on the next $5,000 give $1,000 commission.
Assumptions and limits
No clawbacks, quotas, shared-credit rules, payroll tax or commission eligibility. Contract plans using retroactive tiers need a different calculation.
Common questions
Which inputs should I use?
Apply marginal tier rates only to the sales in each tier. The higher rate is not retroactively applied to all sales.
What does the result exclude?
No clawbacks, quotas, shared-credit rules, payroll tax or commission eligibility. Contract plans using retroactive tiers need a different calculation.