Marginal bands
For 35,000.00 eligible sales, rates of 3% up to 10,000, 5% from 10,000 to 25,000, and 8% above 25,000 produce 300.00 + 750.00 + 800.00 = 1,850.00 commission.
Model your compensation rules
One tier per line. End with * | rate for unlimited sales. Higher rates affect only the sales slice in that tier.
Use eligible sales after any adjustments required by your agreement. This model adds base pay and one bonus; it does not model draws, deductions, clawbacks, retroactive tiers, or payroll tax.
Commission by sales slice
Gross pay for entered period$4,350.00
Commission $1,850.00 · effective commission rate 5.29%
| Sales band | Eligible slice | Rate | Earned |
|---|---|---|---|
| 0.00 to 10000.00 | $10,000.00 | 3% | $300.00 |
| 10000.00 to 25000.00 | $15,000.00 | 5% | $750.00 |
| Above 25000.00 | $10,000.00 | 8% | $800.00 |
| Item | Value |
|---|---|
| Base pay | $2,000.00 |
| Commission | $1,850.00 |
| Bonus earned | $500.00 |
| More sales to bonus threshold | $0.00 |
| Gross pay | $4,350.00 |
Calculations run in your browser. Inputs are not uploaded or saved by this calculator.
How to use the Commission Calculator
- 01
Enter sales eligible for commission during one pay period. Select flat rate or marginal tiers.
- 02
For tiers, enter upper sales limit | rate on each line. Limits must increase, and the final line uses * for an unlimited upper limit.
- 03
Enter base pay and a bonus threshold and amount for the same period. Read each sales slice and download the scenario if useful.
Examples
Base plus bonus
Add 2,000.00 base pay and a 500.00 bonus at 30,000.00 sales to that scenario. Since 35,000.00 meets the threshold, modeled gross pay is 4,350.00.
Marginal is a specific tier rule
In marginal mode, each percentage applies only to the sales slice inside that band. Crossing a threshold does not reprice earlier sales. Each band’s commission rounds to cents before the results are added. Flat mode applies one percentage to the full eligible sales amount.
Keep the agreement’s definition of sales
Eligible sales may differ from invoiced revenue after refunds, cancellations or other contract adjustments. Enter the base your agreement uses. The tool adds base pay and a single bonus earned at or above its threshold; it does not infer employment terms.
What to know
- Up to 20 marginal tiers with strictly increasing limits and an unlimited final band.
- This is a user-defined scenario rather than a payroll or contract interpretation.
Common questions
Can this calculate retroactive or all-sales tiers?
No. Marginal tiers apply rates to slices. If a contract applies the achieved rate to all sales, use flat mode with that rate for a separate scenario.
What does the effective rate include?
It is commission divided by eligible sales. Base pay and bonus are excluded. At zero sales, the displayed rate is zero by convention.
Can a threshold be zero?
Yes. A bonus with a zero threshold is earned even with zero sales. Set the bonus amount to zero if you do not want a bonus.
Is gross pay the deposited amount?
No. Deductions, tax, draws, clawbacks, caps and collection timing are outside the model.