Commission Calculator: Flat and Tiered Sales Commission

Enter the sales amount and the commission rate. Choose flat or tiered, where a higher rate applies above a sales target, and add a fixed bonus if there is one.

FreeNo sign-upRuns in your browserUpdated 2 Nov 2026
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For the tiered type, this is the rate up to the limit.
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Estimates only. Check important results before you rely on them.

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How to use this calculator

  1. Enter the sales amount.
  2. Choose a flat or tiered rate.
  3. For tiered, enter the limit and the higher rate.
  4. Add any fixed bonus and read the commission.

The formula

Flat: Commission = Sales × Rate%. Tiered: Commission = (Sales up to the limit) × Rate 1 + (Sales above the limit) × Rate 2. Total = Commission + Fixed bonus. Effective rate = Total ÷ Sales × 100.

Worked example

On ₹5,00,000 of sales with 2% up to ₹2,00,000 and 4% above: ₹4,000 + ₹12,000 = ₹16,000. Adding a ₹1,000 bonus gives ₹17,000, an effective rate of 3.4%.

Understanding your result

In a tiered plan the higher rate applies only to the sales above the limit, not to all sales. The effective rate shows your blended rate.

When to use it

  • Work out a salesperson's or agent's earnings.
  • Compare commission plans.
  • Set a fair rate for affiliates or resellers.

Assumptions and limits

Tax deducted at source, clawbacks and targets by product are not included.

Frequently asked questions

How do I calculate commission?

Multiply the sales amount by the commission percentage.

What is tiered commission?

A plan where the rate rises once sales pass a limit, and only the extra sales earn the higher rate.

What is the effective rate?

Total commission divided by total sales, as a percentage.

Can I add a fixed bonus?

Yes. Enter it in the fixed bonus field.

Is TDS deducted?

Not here. Check the rules that apply to your payment.