Sales commission calculator
Works out what a rep earns on a deal, stays in the browser.
You earn $10,000 on $100,000 in sales.
What is sales commission
Sales commission is the pay a rep earns for closing a deal, on top of or instead of a base salary. It is usually a percent of the sale amount, so a bigger deal means a bigger payout for the same rate.
Commission ties a rep's pay to results, not just hours worked. Most sales teams use it to reward the reps who bring in revenue and to keep everyone focused on closing, not just working leads.
How to calculate sales commission
The formula is commission equals sale amount times commission rate. If a rep closes a ten thousand dollar deal at a five percent rate, the commission is ten thousand times zero point zero five, which is five hundred dollars.
That simple version covers a flat rate plan. Real commission plans often add tiers that raise the rate past a certain sales volume, accelerators that boost pay once a rep beats quota, and quotas that must be hit before any commission is paid at all.
How commission plans work in practice
Most companies write the rate and any tiers or accelerators into a formal plan, then track each rep against it through the year. The plan usually resets each quarter or year, alongside a new quota, so reps and managers both know what a deal is worth before it closes.
The hard part is keeping the tracking honest as the plan gets more complex. A custom CRM can track commissions and quota attainment the exact way the plan is written, instead of forcing tiers and accelerators into a tool that only understands flat rates.
What is a typical sales commission rate
Rates vary a lot by role and deal size, but these general ranges are commonly cited as a starting point.
| Role or plan | Typical commission |
|---|---|
| SDR or BDR (sets meetings, does not close) | Small flat bonus per qualified meeting, or 1 to 3 percent, often capped |
| Account executive (mid market) | 8 to 12 percent of deal value is a common range |
| Enterprise account executive (large deals) | 5 to 8 percent, a lower rate but much bigger deal sizes |
| Tiered or accelerator plan | Base rate up to quota, then 1.5x to 2x the rate on sales past 100 percent of quota |
| On target earnings (OTE) split | Commission is often sized so OTE lands close to 50 percent base and 50 percent variable |
These are general ranges to orient you, not a guarantee. Actual commission rates depend on your industry, deal size, and company stage. Your own written plan is what actually applies to you.
How to design a fair commission plan
Match the rate to the sales motion
A short sales cycle with many small deals usually pays a flat rate. Long enterprise cycles with big deals often pay a lower rate but add accelerators, since one deal can carry a whole quarter.
Set tiers that reward hitting and beating quota
A common structure pays one rate up to quota and a higher rate past it. This keeps reps motivated after they hit their number instead of coasting for the rest of the period.
Cap payouts carefully, or not at all
Hard caps on commission can push reps to sit on deals until the next period opens. If a cap is needed for budget reasons, pair it with a clear reason, like a windfall deal outside normal territory.
Write clawback and refund rules into the plan upfront
If a deal cancels or a customer does not pay, spell out how much commission gets clawed back and when. Reps should see this rule before they close the deal, not after.
Track attainment the way the plan is actually written
Tiers, accelerators, and quota resets are hard to track accurately in a generic CRM built for flat rate commission. A CRM built around the real plan gives reps and managers the same numbers, so payouts do not need to be disputed or recalculated by hand.
Frequently asked questions
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A CRM that tracks commission the way your plan is written
We build a custom CRM around your real commission plan, tiers, accelerators, and quotas included. No per seat fees. Typical savings of 5x to 10x on your current CRM bill.