Commission calculator

What's your commission check this period?

Enter your quota, what you've closed, and your plan's rates. You get your payout, what your accelerators are adding, and what one more deal would put in your pocket.

Your plan

This period
$
$

Commission rate
%
Percent of revenue paid up to quota.

Plan rules
% of quota
Enter 0 if you earn from the first dollar.
× base rate
Enter 1 if your rate doesn't change above quota.
%
×

What if
$

You earn

$0commission

0%Quota attainment
0%Effective rate
$0From accelerators
0%Next dollar earns
Base rateAccelerated

How your payout breaks down

TierRevenueRateCommission

Payout at different attainment levels

Same plan, different finishes. The highlighted row is closest to where you are now.

AttainmentClosedPayoutEffective rate

The starting numbers are an example plan, not a benchmark. Replace them with the figures from your own comp plan. Plans differ in how thresholds, caps, and clawbacks work, so treat this as an estimate and check your plan document. Your inputs stay in your browser.

How the calculator works

  1. Base rate. Revenue up to 100% of quota earns your base commission rate. If you use target pay instead, the base rate is your target commission ÷ quota.
  2. Threshold. If your attainment is below the threshold, the payout is $0. Once you reach it, commission is paid on everything you closed, starting from the first dollar.
  3. Accelerator 1. Revenue between 100% of quota and the second tier earns your base rate × the accelerator.
  4. Accelerator 2. Revenue above the second tier earns your base rate × the second tier rate.
  5. Effective rate. Total payout ÷ total closed revenue.
payout = (base revenue × rate) + (tier 1 revenue × rate × accel 1) + (tier 2 revenue × rate × accel 2)

Here's the example plan worked out. The quota is $150,000, the base rate is 10%, and revenue above quota pays 1.5×. Closing $165,000 pays $15,000 on the first $150,000 plus $2,250 on the $15,000 above quota (15% of $15,000), for $17,250 total. That's an effective rate of 10.45%. One more $12,000 deal adds $1,800, because all of it lands in the accelerator tier.

Finding your numbers

Frequently asked questions

How is sales commission calculated?

Most plans multiply the revenue you close by a commission rate. If your rate is 10% and you close $150,000, you earn $15,000. Plans with accelerators pay a higher rate on revenue above quota, and plans with a threshold pay nothing until you reach a minimum percentage of quota.

What is a commission accelerator?

An accelerator raises your commission rate once you pass quota. With a 10% base rate and a 1.5× accelerator, every dollar above quota pays 15%. Some plans add a second, higher tier, for example 2× above 150% of quota.

How do I find my commission rate from my OTE?

Divide your target variable pay by your quota. If your on-target commission is $60,000 a year and your annual quota is $600,000, your base commission rate is 10%. Use the period that matches your quota, so quarterly quota with quarterly variable pay.

What is a commission threshold?

A threshold, sometimes called a cliff, is the minimum attainment you need before commission pays out. With a 50% threshold, closing 45% of quota earns nothing, while closing 50% earns commission on everything you closed. Check your comp plan, since some plans only pay on revenue above the threshold.

What is an effective commission rate?

Your effective rate is your total payout divided by your total closed revenue. Once accelerators kick in, your effective rate rises above your base rate, which shows how much the extra deals are really worth.

Related tool

Want to know how much pipeline it takes to reach the accelerators? Use the pipeline coverage calculator to work back from your quota to the meetings and outreach you need each week.