Tiered commission calculator
In a tiered plan the first rate applies up to the threshold and the second rate only to sales above it.
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter sales amount, tier threshold, rate up to threshold and rate above threshold.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Commission = min(sales, threshold) × rate 1 + max(0, sales - threshold) × rate 2. Effective rate = commission ÷ sales × 100.
Example
Inputs: Sales amount = 80,000, Tier threshold = 50,000, Rate up to threshold = 3 %, Rate above threshold = 6 %. Result: Total commission: 3,300.00; Effective rate on sales: 4.13%; Tier 1 commission: 1,500.00.
Limits and caveats
- Assumes the second rate applies only to the excess. Some plans apply the higher rate to all sales once the threshold is hit, so check your plan.
Questions about this tool
Does the higher rate apply to all sales?
Not here. It applies only above the threshold, which is the most common tiered design.
What is the effective rate?
The average commission you earned per unit of sales across both tiers.
How do I handle three tiers?
Multiply the part of sales in each tier by its rate, then add the results.
