Enter deal numbers, choose a base, set tiers, then calculate. Upper bound can be left blank for an open-ended tier.
Sample plan and outcome for a quick sanity check.
| Input | Value | Notes |
|---|---|---|
| Sales amount | 50,000 | Gross sales |
| Returns | 2,000 | Credits reduce net sales |
| Discounts | 1,000 | Discounts reduce net sales |
| Net sales | 47,000 | Base chosen as net sales |
| Tiers | 0–10,000 @5% 10,000–30,000 @7% 30,000+ @10% |
Graduated steps |
| Commission | 3,600 | (10,000×5%) + (20,000×7%) + (17,000×10%) |
- Net sales = Sales − Returns − Discounts
- Gross profit = Net sales − COGS, or Net sales × (Margin% ÷ 100)
- Eligible base = Commission base × (Split% ÷ 100)
For each tier, compute the slice inside its range, then multiply by the tier rate. Total commission is the sum of all tier slice commissions.
Find the highest tier reached, then apply that single rate to the full eligible base.
Apply any cap, add bonus, then subtract draw. Payout cannot go below zero.
- Enter sales, returns, and discounts to get net sales.
- Select net sales or gross profit as the commission base.
- Set your deal split, minimum threshold, and any cap.
- Add tier rows with “From”, optional “To”, and rate percent.
- Click calculate to see a full tier breakdown and payout.
- Use CSV or PDF export to share the result.
1) What is a graduated commission plan?
It pays different rates on different sales slices. Each tier rate applies only to the portion of the base inside that tier, not the entire amount.
2) How is retroactive commission different?
Retroactive plans apply one rate to the full base once you reach a tier. If you cross into a higher tier, that rate can replace lower rates for the entire base.
3) Should I use net sales or gross profit?
Use net sales when commission is based on revenue. Use gross profit when payouts depend on margin. Choose the option that matches your compensation policy.
4) What does the split percentage do?
It adjusts the commission base for shared deals. For example, a 50% split means only half of the base is credited to you for tier calculations.
5) How does a minimum threshold work?
If your eligible base is below the threshold, the calculator sets commission to zero. This models plans that pay only after hitting a starting target.
6) What happens when a cap is set?
The cap limits commission earned from tiers. If calculated commission exceeds the cap, the calculator reduces it to the cap before adding bonus and subtracting draw.
7) Can I include bonuses and draws?
Yes. Bonus is added after tier commission and cap. Draw is subtracted from the total. The final payout is never allowed to drop below zero.
8) Why do my tiers seem to skip amounts?
Check tier “From” values and order. Tiers should be ascending, and upper bounds should be larger than their “From” value. Leave “To” blank only for the final open tier.