Sales Commission Calculator

How to use this tool

1. Use flat mode for a simple rate, or tiered mode for multiple brackets.
2. Enter sales, base pay, and quota for the same commission period.
3. In tiered mode, optionally enter an above-quota accelerator multiplier.
4. Compare estimated total pay, OTE at quota, and flat or tiered commissions.

This calculator estimates commission from the sales amount and rates you enter. In flat-rate mode, commission is sales multiplied by the commission percentage. Add base pay to estimate total pay for the period, and enter quota sales to calculate on-target earnings (OTE) at 100% of quota. Use a consistent period for sales, quota, and base pay, such as one month or one quarter.

Tiered mode uses marginal brackets: each rate applies only to the sales dollars inside its bracket. For example, a plan paying 4% on the first $25,000 and 7% above that earns $1,000 on the first $25,000. At $40,000 in sales, the next $15,000 earns $1,050, for $2,050 total. The higher rate does not retroactively apply to earlier sales, so crossing a threshold does not create a sudden commission jump on the entire amount.

In tiered mode, an optional accelerator changes the rate only for sales above the entered quota. The multiplier scales each applicable marginal tier rate: a 2× accelerator turns a 7% tier into 14% for the portion above quota, while sales at or below quota keep their regular rates. Estimated total pay is base pay plus commission at the entered sales. OTE is base pay plus commission calculated exactly at the quota, before any above-quota acceleration applies.

For example, with $60,000 base pay, $50,000 in sales, a $40,000 quota, and the 4% / 7% tiers above, a 2× accelerator produces $3,450 commission and $63,450 estimated total pay. At quota, commission is $2,050, so OTE is $62,050. The preserved flat-rate comparator at 5% pays $2,500 on the same $50,000 sales, making the tiered estimate $950 higher. Changing the sales amount updates both plans against the same input.

Treat the result as a scenario estimate, not a guarantee of compensation. Real plans may use bookings, collected revenue, margins, cancellations, caps, split credit, draw recovery, or different quota and accelerator rules. Check the signed plan for the definitions and period used by your employer; this tool does not estimate payroll taxes or resolve plan disputes. Inputs and calculations stay in this browser, and saved calculator settings remain on this device.

Types of commission structures

• Straight commission: 100% of income comes from commissions. High risk, high reward. Common in real estate and door-to-door sales.
• Base + commission: a guaranteed base salary plus commission on top. Most common in B2B and SaaS sales.
• Tiered commission: commission rate increases after hitting certain thresholds. Motivates high performers. E.g., 5% on first $10,000, 8% on $10,001–$25,000, 10% beyond.
• Residual commission: ongoing commissions on recurring revenue (subscriptions, insurance renewals). Builds passive income over time.

On-target earnings (OTE)

OTE is the total expected compensation (base + commission) if a salesperson hits 100% of their quota. A typical OTE split is 50/50 or 60/40 (base/commission) in enterprise sales.

Draw against commission

A draw is an advance payment against future commissions. It provides a minimum income floor during slow periods or ramp-up time for new hires. The draw is then recovered from commissions earned.

• Recoverable draw: the advance must be paid back from future commissions. If a rep earns $3,000 in commission but received a $5,000 draw, they owe the $2,000 deficit. The debt can carry forward to future periods, creating a "draw hole" that is difficult to escape.
• Non-recoverable draw: if the rep doesn’t earn enough to cover the draw, the deficit is forgiven. This is effectively a salary floor and carries more risk for the employer. Common for onboarding new territory reps.

Commission plan comparison: hypothetical earnings