Home › Business & Marketing › Sales Commission Calculator

Sales Commission Calculator

Computes the commission on a sale at a flat percentage, or with a two-tier plan where a higher rate applies above a threshold, either marginally (only on the amount above the threshold) or retroactively (on the whole amount), plus the effective rate and the net to the company.

When to use

You need to pay or check a salesperson's, agent's or affiliate's commission on a deal, including accelerator tiers.

Do not use when: Commission depends on quota attainment across many deals, includes a base salary or draw, or has more than two tiers (compute tiers separately).

Formula

flat: commission = sale_amount × rate/100; marginal tier: min(sale, threshold) × rate/100 + max(sale − threshold, 0) × tier_rate/100; retroactive tier: sale_amount × tier_rate/100 when sale_amount > threshold

Inputs

Parameter	Type	Unit	Required	Description
`sale_amount`	number		yes	Revenue on which commission is paid. Range: ≥ 0, ≤ 1000000000000
`commission_percent`	number	%	yes	Base commission rate. Range: ≥ 0, ≤ 100
`tier_threshold`	number		no	Optional amount above which tier_commission_percent applies. Range: > 0, ≤ 1000000000000
`tier_commission_percent`	number	%	no	Rate applied above the threshold (marginal) or to the whole amount once the threshold is exceeded (retroactive). Range: ≥ 0, ≤ 100
`tier_mode`	enum: marginal \| retroactive		default marginal	How the upper tier is applied.

Outputs

Output	Type	Unit	Description
`commission`	number		Total commission earned.
`base_tier_commission`	number		Part earned at the base rate.
`upper_tier_commission`	number		Part earned at the upper-tier rate (0 without a tier).
`effective_rate_percent`	number	%	commission / sale_amount × 100.
`net_after_commission`	number		sale_amount − commission.

Example

10,000 at 5 %: {"sale_amount":10000,"commission_percent":5} → {"commission":500,"base_tier_commission":500,"upper_tier_commission":0,"effective_rate_percent":5,"net_after_commission":9500}

30,000 at 5 % up to 20,000 then 8 % (marginal): {"sale_amount":30000,"commission_percent":5,"tier_threshold":20000,"tier_commission_percent":8,"tier_mode":"marginal"} → {"commission":1800,"base_tier_commission":1000,"upper_tier_commission":800,"effective_rate_percent":6,"net_after_commission":28200}

GET https://tttkmbb.com/api/v1/calculate/sales-commission?sale_amount=10000&commission_percent=5

Machine access

API: GET https://tttkmbb.com/api/v1/calculate/sales-commission (query parameters) or POST with a JSON body {"inputs": {...}}
Schema: https://tttkmbb.com/api/v1/calculators/sales-commission · Markdown: https://tttkmbb.com/business/sales-commission.md · JSON definition: https://tttkmbb.com/business/sales-commission.json
MCP: server https://tttkmbb.com/mcp, tool run_calculator with calculator_id="sales-commission"
OpenAPI operationId: calculate_sales_commission
Freshness: static. Authentication: none. Rate limit: fair use (see rate limits).

Sources

FAQ

Marginal or retroactive tiers?

Marginal (like tax brackets) pays the higher rate only on the excess: 30,000 at 5 %/8 % over 20,000 gives 1,800. Retroactive pays 8 % on all 30,000 = 2,400 and creates a jump at the threshold.

Is commission calculated on revenue or profit?

This calculator uses whatever amount you enter; many plans use revenue, some use gross profit. Enter the plan's basis as sale_amount.

Related calculators

Percentage Calculator — Simple percent-of arithmetic.
Margin and Markup Calculator — Check the margin that remains after commission.
Sales Tax Calculator — Tax on the same sale amount.