Figure out what a commission plan pays a rep, and what it costs your company, in under a minute. Pick from 10 common commission structures to calculate a single Rep Payout, or switch to Team Budget to model a full year of compensation across your sales team.
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The calculator has two tabs, one for each side of the commission conversation.
Check a single rep’s commission for a pay period.
Plan a full year of compensation across your team.
Every result includes a How this is calculated panel that spells out the rules behind the numbers, so you can compare them with your own plan.
These are the formulas the calculator uses for each structure.
For worked examples of each one, and guidance on which structure fits which role, see 12 Sales Commission Structures (with Formulas).
Find answers to common questions about sales commissions.
The simplest formula is sales multiplied by the commission rate. A rep who closes $80,000 at a 5% rate earns $4,000. Other plans adjust that base: tiered plans change the rate as sales grow, gross margin plans apply the rate to profit, and base plus commission plans add a fixed salary. The Rep Payout tab supports 10 structures and shows the math step by step.
A standard tiered plan pays each tier’s rate only on the sales within that tier. A retroactive plan applies the highest tier reached to all sales. Take a plan that pays 5% up to $50,000 and 8% above it, with a rep at $70,000. Standard tiered pays $2,500 plus $1,600, for $4,100. Retroactive pays 8% on the full $70,000, for $5,600.
The rep receives whichever is greater: the draw or the commission they earned. With a $3,000 monthly draw and $2,200 in earned commission, the rep is paid $3,000. Many plans treat the $800 gap as recoverable, so it comes out of future commission. Draws are common for new hires and in seasonal markets where pipeline takes time to build.
An accelerator raises the commission rate once a rep passes quota. With a $100,000 quota, 6% up to quota and 9% above it, a rep at $125,000 earns $6,000 plus $2,250, for $8,250. Accelerators reward top performers, so model their cost before launch. The Team Budget tab stress tests your plan at 75%, 100%, and 125% of quota.
Revenue-based plans are easier for reps to understand and track. Gross margin plans tie pay to profit, so a discount lowers the rep’s payout along with the company’s margin. Margin-based plans fit teams with wide pricing flexibility, such as distribution and wholesale. Revenue-based plans fit teams selling at fixed prices.
Enter base salary, target commission, accelerator, team size, and quota in the Team Budget tab. Then set how many reps typically miss, hit, or exceed quota. The calculator returns total commission budget, cost of sales, and a view at three performance levels, so you can see what the plan costs in a slow year and in a strong one.
It depends on sales cycle and deal size. Short-cycle, high-volume teams in industries like roofing, solar, and home services often use flat per-unit or tiered plans that reward daily activity. Longer-cycle B2B teams tend to use base plus commission with accelerators. Teams that share accounts or territories often use split or territory volume plans.
