Sales Commission Calculator – Flat and Tiered

How sales commission works

Commission is pay that depends on how much you sell. The simplest plan pays one rate on all sales. Many companies use tiers instead, where each band of sales earns its own rate and higher bands pay more, to reward bigger results. This calculator handles both and shows exactly what each slab contributes.

Flat and tiered plans

Flat: commission = sales × rate.

Tiered: each slab pays its rate only on the sales that fall inside it. Sales above a limit do not change what you earned in the lower slabs. This is different from a plan where reaching a higher slab raises the rate on every sale, so check your plan's wording.

Worked example

Sales are ₹8,00,000 with three slabs: 2% on the first ₹2,00,000, 4% on the next ₹3,00,000 (up to ₹5,00,000) and 6% on everything above.

The first slab earns ₹4,000, the second earns ₹12,000 and the last ₹3,00,000 earns ₹18,000. Total commission is ₹34,000, an effective rate of 4.25%.

Frequently asked questions

What is the difference between tiered and cumulative-rate plans?

In a tiered (marginal) plan each rate applies only to its own band. In some other plans the highest slab you reach sets one rate for all sales. The second pays more, so confirm which one your plan uses.

Can I include a base salary?

Yes. Enter it and the tool adds it to the commission to show total pay.

Is commission taxable?

Yes. It is normally treated as part of salary income, and TDS may apply. This tool shows the amount before tax.

What if my plan has a target or quota?

Use slabs for it. Make the first slab the sales up to the quota at 0%, then add the rates that apply above it.

Is my data uploaded?

No. Everything runs in your browser.

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Results are estimates for information only and are not financial, tax or legal advice.