Sales commission calculator
Base pay, percentage, and the threshold where it starts counting. With the effective percentage at the end, which is the only way to compare two offers.
Your figures
Result
- Base pay$1,20044.4%
- Commission$1,50055.6%
- From commission
- $1,500.00
- From base pay
- $1,200.00
- Sales that earn commission
- $30,000.00
- Effective percentage on sales
- 9.00%
Breakdown of what you earn
| Item | Amount |
|---|---|
| Base pay | $1,200.00 |
| Commission | $1,500.00 |
| Total for the month | $2,700.00 |
What we assume
- Commission applies only to sales above the threshold.
- This is a single-tier commission: no accelerators by target.
- Figures are gross: no tax or deductions are taken off.
- It works on sales, not on margin. If your commission is on margin, enter that instead.
How it is calculated
The usual scheme has two parts:
total = base + (sales − threshold) × commission / 100
If sales do not reach the threshold, the variable part is zero and only the base remains. The threshold never eats into the base.
The effective percentage, which is what matters
Comparing "6% with no base" against "4% plus £1,200 base" cannot be done in your head, because the answer changes with volume. So we work out the effective percentage: total earnings divided by total sales.
At £30,000 of sales the first scheme pays £1,800 (6% effective) and the second pays £2,400 (8%). But at £100,000 the first pays £6,000 (6%) and the second £5,200 (5.2%). The crossover is at £60,000, and above it the no-base scheme wins.
The threshold
A £10,000 threshold at 5% is not 5%: on £30,000 of sales you only earn on £20,000, so £1,000 instead of £1,500. The effective percentage drops from 5% to 3.3% without the number in the contract changing.
It is the small print that most changes the answer and gets looked at least.
What this does not cover
Tiered accelerators, where the rate rises as you clear each target, and commission on margin rather than revenue. For the second, work out your margin first and use that figure as "sales".
An example
On £30,000 of sales, a 5% commission and £1,200 of base pay, you earn £2,700: £1,200 fixed and £1,500 variable. The effective percentage on sales is 9%.
Frequently asked questions
Is a higher base or a higher commission better?
It depends on your volume and how much it swings. Base pay buys calm in the bad months; commission pays better in the good ones. Work out where the two schemes cross and see whether your normal months land above or below it.
Is commission on revenue or on margin?
Both exist and they are not the same. On revenue is more common and easier to verify; on margin aligns interests better, because it removes the incentive to close deals with enormous discounts. If yours is on margin, put the margin in the sales box.
What happens with returns?
It depends on the contract, and it is worth having in writing. Normally commission is clawed back if the customer returns the goods or fails to pay, sometimes months later. This calculator assumes settled sales.
Is the total gross or net?
Gross. Commission is taxed as employment income just like salary, so tax and contributions still come off what you see here.
Keep calculating
All tools →- Profit margin calculator Margin and markup come from the same two numbers and are not the same size. Here you get both at once, which is the only way to stop confusing them.
- Markup calculator Put a percentage on your cost and out comes the price. And next to it, the margin you actually keep, which is always smaller and almost nobody works out.
- Percentage calculator Enter a percentage and a number. Instead of making you pick an operation first, we give you all four answers at once.
Updated on 2026-09-10. Calculations run in your browser; nothing you type is sent to a server.