Free tool
Sales commission calculator.
Enter sales, quota and rate. Add an accelerator for sales above quota, and a base salary to see total pay.
The short answer
Sales commission is the sales amount multiplied by the commission rate. With an accelerator, sales above quota earn a higher rate. For example, $120,000 in sales against a $100,000 quota, at 10% with a 1.5× accelerator, pays $10,000 plus $3,000, which comes to $13,000.
Designing a simple plan
- Keep it simple enough to work out in your head. Reps chase what they understand.
- Pay on what you want. Revenue, gross profit or collected cash each change how people behave.
- Use accelerators to reward beating quota. A 1.5× or 2× rate is a common starting point, not a rule.
- Set quotas people can reach. A plan nobody can hit doesn't motivate anyone.
This calculator gives simple estimates. Your real plan may have caps, splits or clawbacks it doesn't cover.
Questions
How do you calculate sales commission?
Sales × commission rate. With a quota and accelerator, pay the normal rate up to quota, and rate × multiplier on anything above it.
What is an accelerator?
A higher commission rate on sales above quota, meant to reward people who beat their target.
What is an effective commission rate?
Total commission ÷ total sales. It's useful when accelerators make the real rate higher than the headline one.
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