Free Sales Commission Calculator

How this tool computes its result

In Simple mode, commission is a flat baseCommission = revenue × baseRate / 100. In Tiered mode, calculateCommission walks the tiers array in order, and for each tier consumes `min(remainingRevenue, tierMax - tierMin + 1)` of the remaining revenue at that tier's rate — the "+1" treats each tier as an inclusive band, which is only mathematically correct if tiers are contiguous with each tier's min set to the previous tier's max + 1. A bonus is added only when revenue ≥ quota: bonus = (revenue − quota) × bonusRate / 100, further gated by bonusThreshold (quota-achievement percent required) when both bonusRate and bonusThreshold are set. effectiveRate = totalCommission / revenue × 100.

Worked example

Simple mode: revenue $50,000, baseRate 10%, quota $40,000, bonusRate 15%, bonusThreshold 100: baseCommission = $50,000 × 0.10 = $5,000. quotaAchievement = 50000/40000×100 = 125%, which clears the 100% bonusThreshold, so bonus = (50000 − 40000) × 0.15 = $1,500. totalCommission = $5,000 + $1,500 = $6,500, effectiveRate = 6500/50000×100 = 13.00%.

When not to use this tool

The tiered calculation trusts that tiers are contiguous and non-overlapping — it never validates the tiers array against the actual revenue distribution. If you edit tier boundaries to leave a gap or overlap (e.g. tier 1 caps at $10,000 but tier 2 starts at $15,000), the calculator still consumes remainingRevenue sequentially by tier order regardless of whether that revenue logically falls inside the gap, silently applying tier 2's rate to dollars that should not exist in any tier.

Common mistakes

• - Using Tiered Structure mode without ever visiting the Simple Rate tab to set a nonzero Commission Rate — the result memo short-circuits to null whenever `baseRateNum === 0`, and the base-rate input only exists on the Simple Rate tab, so a pure-tiered session can render no results at all until that field is populated once.
• - Editing tier min/max boundaries to create gaps or overlaps — nothing validates tier contiguity, so misconfigured tiers apply the wrong rate to revenue that falls in a gap or gets double-counted in an overlap.
• - Combining a bonus with tiered rates and expecting the bonus base to respect the tier structure — bonus is always computed as a flat (revenue − quota) × bonusRate regardless of which tier that revenue would otherwise fall into.

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