Currency: USD
Enter all amounts in USD. Changing currency keeps numbers unchanged; no exchange rate is applied.
- Commission
- $500.00
- Total compensation
- $500.00
How it works
Apply the higher rate only above threshold
With 10% on the first 10,000 of sales and 20% above it, sales of 15,000 earn 2,000 commission before base pay. Applying 20% to everything would incorrectly produce 3,000 in this marginal model.
Understanding flat and tiered commission
A flat commission applies one rate to the selected sales amount. A marginal tier schedule applies different rates to portions of that amount, rather than automatically applying the highest rate to all sales. Enter the tiers in the order requested and compare the total commission with the underlying sales figure. The result follows the entered schedule, not an employer's unentered bonus or clawback rules.
Calculate: formula and assumptions
Commission = sales×commission rate.
Enter amounts in the same currency. Tax and commission rules can vary by contract and jurisdiction.
Sales or rate from commission: formula and assumptions
Commission=sales×rate.
This inverse calculation assumes a single flat commission rate.
Marginal commission tiers: formula and assumptions
Apply each rate only to sales within that tier, then add base pay.
Tier limits must increase. The final tier rate continues above its upper limit; this is a marginal, not retroactive, schedule.
Worked example
Reference example currency: USD. These fixed examples do not change with your calculator preferences.
Using the Calculate example:
- Sales amount ($)
- 10000
- Commission rate (%)
- 5
- Base pay ($)
- 0
Commission = sales×commission rate.
Example result
Commission: $500.00
Total compensation: $500.00
These are illustrative inputs. Change the values to explore a different scenario.
Formula references
References explain the underlying methods; they do not imply endorsement or individual professional review of Finflo.
Common questions
Do tiered rates apply to all sales once a threshold is reached?
No. This is a marginal schedule: each rate applies only to sales within its tier, rather than retroactively to all sales.
What happens above the highest entered tier?
The final tier's rate continues above its upper limit. Confirm that this matches the actual commission agreement.
Prepared by Finflo. See our methodology and editorial policy. Read the relevant professional-advice limitations.