Sales Commission Calculator

Multiply sales by the commission rate: $75,000 at 5% earns $3,750. With an accelerator — say 8% on everything above a $50,000 quota — the same sales earn $3,750 + $2,000 = $5,750. This calculator handles both the flat and tiered math.

It varies enormously: 5–10% is common in many B2B roles, 20–30%+ in high-margin software or insurance, and lower percentages on very large deal sizes. What matters more than the rate is the quota's attainability — a generous rate on an impossible quota pays nothing.

A higher rate paid on sales above quota (or above 100% attainment), designed to reward over-performance. Accelerators of 1.5–2× the base rate are common. They're where top performers make real money — model yours above by setting the quota and accelerator rate.

When a customer cancels or churns, the company 'claws back' the commission already paid on that deal. Clawback windows of 6–12 months are typical in SaaS. Always understand your plan's clawback terms — booked commission isn't truly earned until the window closes.

No — commissions are ordinary income, though employers often withhold at the flat 22% supplemental rate, which may differ from your actual marginal rate. You'll settle the difference at tax time. The Tax Calculator estimates your real liability on total income.

A guaranteed advance paid each period, deducted from future commissions — common for ramping new reps. A recoverable draw must be repaid if commissions fall short; a non-recoverable draw doesn't. Know which kind you're signing.

Rates increase at sales thresholds: e.g. 5% to $50k, 7% to $100k, 10% beyond. Each tier applies to sales within its band (or sometimes retroactively to all sales — a huge difference). Get the plan document and model the exact bands before counting on the upside.

If you consistently exceed quota, higher commission usually wins — top reps often earn 2–3× their base. If you're ramping, new to the territory, or the quota looks aggressive, favour base salary for stability. Honestly assess your likely attainment, then run both scenarios here.