How to use
Use the commission calculator for either a single flat sales rate or a graduated marginal tier structure. In tiered mode, each percentage applies only to the slice of sales inside that band; the calculator then adds the bands and optional base pay.
- Choose a flat rate or graduated marginal tiers.
- Enter sales for one period and optional base pay for that same period.
- For a flat plan enter one rate; for tiers enter both limits and the three band rates.
- Review each tier contribution, total commission and effective variable rate.
How it is calculated
Example
Tiered example: on 80,000 of sales, with 3% on the first 20,000, 5% from 20,000 to 50,000 and 8% above 50,000, commission is 600 + 1,500 + 2,400 = 4,500. Add 2,000 base pay and the period total is 6,500.
Important notes
This is arithmetic, not an interpretation of a compensation agreement. Real plans may use retroactive rates, returns adjustments, splits, caps, draws or taxes. Mihsaba’s tiered mode is explicitly marginal, so check the actual plan before treating the estimate as payable earnings.
Frequently asked questions
What is the difference between flat and tiered commission?
A flat plan applies one percentage to all sales. Marginal tiers apply different percentages to different slices of sales.
Can I mix annual base pay with one month of sales?
No. Base pay and sales should cover the same time period if you want a meaningful total.
Does this include taxes or returns?
No, unless those adjustments are already reflected in the sales figure you enter. Your compensation agreement controls actual eligibility.
Is this calculator free?
Yes. It is free to use and requires no account.