Commission calculator

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Commission on these sales
$9,000

$4,800 at the base rate, $4,200 accelerated

Blended rate5.00%
Next 1,000$70
Past threshold$60,000
$5,152$10.3k$15.5k$20.6k$0$81.0k$162k$243k$324kaccelerates$180k: $9,000$5,152$10.3k$15.5k$20.6k$0$162k$324kaccelerates$180k: $9,000

What the plan pays at every sales volume. The bend is the accelerator: past it, every further sale is worth the higher rate rather than the headline one.

Selling $180,000 on 4.00% to $120,000 and 7.00% above it pays $9,000: $4,800 at the base rate and $4,200 accelerated. Blended that is 5.00% of everything sold, and the next thousand is worth $70.

How to use this, and the parts people get wrong
  • Tiers are graduated: each higher rate applies only to the sales above its threshold, not to everything.
  • Enter the thresholds and rates from your own plan; the defaults are only a common shape.
  • The split is what the house takes before you are paid, so apply it last, not first.

Where the cheque comes from

The $60,000 sold past the threshold is 33% of the volume and 47% of the cheque. Everything after the threshold is worth 7.00%, not 4.00%.

5.00%blended across everything sold
$70for the next thousand of sales
$4,200of the cheque came from the accelerator

The same plan at other volumes

What a quarter half as good, or twice as good, would have paid.

SalesCommissionBlendedAccelerated
$45.0k$1,8004.00%$0
$90.0k$3,6004.00%$0
$135k$5,8504.33%$1,050
$180k$9,0005.00%$4,200
$225k$12,1505.40%$7,350
$270k$15,3005.67%$10,500
$360k$21,6006.00%$16,800

Questions people ask

How do I calculate commission?
Rate times sales, applied in slices when the plan has a threshold. Here $180,000 at 4.00% up to $120,000 pays $4,800, and the $60,000 above it at 7.00% pays $4,200, for $9,000 in all.
What is an accelerator?
A higher rate that applies only to sales above a threshold, so the plan pays more per pound the further past target you get. It is why the line on this page bends upward rather than running straight, and why the last deal of a quarter is worth more than the first.
What is my effective commission rate?
Total commission divided by total sales: 5.00% here. It sits between the two rates and rises as more of the volume falls above the threshold. It is the number to use when comparing one plan against another, because a headline rate on its own says nothing about which slice it applies to.
What is one more sale worth?
Past the threshold, the accelerated rate: 7.00%, or $70 per thousand sold. Below the threshold it is the base rate. That is the marginal figure, and it is not the same as the blended one.
Is commission taxed differently?
The money is taxed like other pay, though a large payment can land part of it in a higher band and some places withhold supplemental pay at a flat rate that is later reconciled. Tax is national and is not applied on this page.

Method and sources

  • Standard tiered-rate arithmeticBase rate to the threshold, accelerated rate above it
The calculation

Sales up to the threshold are paid at the base rate; sales above it at the accelerated rate. The two are added. The blended rate is the total over all sales, and the marginal rate is whichever rate the next sale would attract. The chart recomputes the whole plan at every volume from nothing to nearly twice what you sold.

What these figures do not cover
  • One threshold and two rates. Plans with three or more tiers need a run per tier boundary.
  • Draws, clawbacks, splits between reps and quota retirement rules are not modelled.
  • Tax is not applied; this is gross commission.
  • The threshold is treated as applying to the same period as the sales.

Last updated August 2026.

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