How to use the Commission Calculator
- Enter total sales for the period.
- Enter the commission rate and any basic salary.
- Optionally enter a sales target and a higher rate for sales above it.
- See commission earned and total earnings.
How it's calculated
Show the formula
Without target: commission = sales × rate
With target: target × rate + (sales − target) × higher rate
With target: target × rate + (sales − target) × higher rate
Sales up to the target earn the normal rate and sales above it earn the higher rate. Leave the target at 0 for a single flat rate.
Worked example
These are the example numbers the calculator opens with. Change any of them above to see your own result.
You enter
| Total sales | Rs 15,00,000 |
|---|---|
| Commission rate | 5% |
| Basic salary | Rs 50,000 |
| Sales target (optional) | Rs 10,00,000 |
| Rate above target | 8% |
You get
| Commission earned | Rs 90,000 |
|---|---|
| Basic salary | Rs 50,000 |
| Total earnings | Rs 1,40,000 |
| Effective commission rate | 6% |
| Target | Reached ✓ |
Tips
- Check whether commission is paid on sales booked or cash collected.
- A higher rate above target rewards extra effort; it applies only to the sales above the target.
Frequently asked questions
How is tiered commission calculated?
Sales up to the target earn the normal rate. Only the sales above the target earn the higher rate.
What is the effective commission rate?
Total commission divided by total sales; it shows your average rate across all sales.