Sales commission calculator
Most sales plans pay a base salary, a percentage on revenue, and a higher percentage once a quota is passed. The higher rate applies only to the excess, which is the part people get wrong when they estimate their pay.
- Commission
- $31,000.00
- Base salary
- $8,000.00
- Earned at the standard rate
- $15,000.00
- Earned at the accelerated rate
- $16,000.00
- Revenue above quota
- $200,000.00
- Effective commission rate
- 6.20 %
- Quota attainment
- 166.7 %
The formula
Commission = min(sales, quota) × rate + max(0, sales − quota) × accelerated rate, multiplied by your share where a deal is split. Total pay = base + commission.
Worked example
500,000 closed against a 300,000 quota, at 5% up to quota and 8% beyond, with 8,000 of base: 15,000 at the standard rate plus 16,000 accelerated, so 31,000 of commission and 39,000 in total. Quota attainment is 166.7%.
How to use it
- 1Use revenue as your plan defines it — booked, invoiced or collected can differ by months.
- 2Set the accelerated rate equal to the standard one if your plan has no accelerator.
- 3Use the split field when you share a deal with a colleague; 50 means you take half.
Questions people ask
Does the higher rate apply to everything once I pass quota?
Usually not. Most plans are marginal, like tax brackets: the higher rate pays only on revenue above the threshold. A few plans are retroactive; check your plan document.
What is a typical commission rate?
It varies by industry and deal size, from 2% to 5% in volume sales to 10% or more where deals are large and rare. Compare on-target earnings rather than the rate alone.
Last reviewed: 2026-10-20