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.
Estimates only. Check important results before you rely on them.
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From related categoriesHow to use this calculator
- Enter the sales amount.
- Choose a flat or tiered rate.
- For tiered, enter the limit and the higher rate.
- Add any fixed bonus and read the commission.
The formula
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.