Commission Calculator
Calculate total compensation from base salary and sales commission.
Compensation Breakdown
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Request a ToolHow to Use the Commission Calculator
This calculator estimates your total compensation when you earn a base salary plus sales commission:
- Enter your annual base salary. This is your guaranteed pay before any commission or bonuses.
- Enter your total sales amount. This is the total dollar value of sales you close (or expect to close) in a year.
- Set your commission rate. This is the percentage you earn on every dollar of sales. For example, 10% means you earn $0.10 for every $1 sold.
- Optional: set a bonus threshold and rate. Some compensation plans pay a higher rate after you exceed a sales target. Enter the threshold and the additional bonus rate that applies above it. Set both to 0 if your plan does not include accelerators.
Results update instantly as you type. The breakdown table shows each component of your compensation, including the effective commission rate across all sales.
About Sales Commission
Sales commission is variable pay tied to the revenue you generate. Most commission structures use a flat percentage of sales, though many companies add accelerators, bonuses, or tiered rates to reward high performers. Understanding your on-target earnings (OTE) helps you compare job offers and plan your finances around realistic income expectations.
This calculator handles a base rate plus a single bonus tier. For more complex structures with multiple tiers, calculate each tier separately and add the results. All calculations run in your browser with no data stored.
Frequently Asked Questions
What is a typical sales commission rate?
Commission rates vary widely by industry. Software sales reps typically earn 5% to 15% of deal value. Real estate agents earn 2.5% to 3% per side. Retail sales commissions are often 1% to 5%. The rate depends on deal size, sales cycle length, and how much of the selling is done by the individual.
What is OTE (on-target earnings)?
OTE is the total expected compensation when a salesperson hits 100% of their quota. It combines base salary and expected commission. For example, a $60,000 base with a $40,000 commission at quota means an OTE of $100,000. OTE is not guaranteed; it assumes you meet your sales targets.
What is a commission accelerator?
An accelerator is a higher commission rate that kicks in after you exceed a sales threshold. For example, you might earn 10% on the first $150,000 in sales and 15% on everything above that. This calculator supports one bonus tier above a threshold to model this structure.
How is commission taxed?
Commission income is taxed as regular income at your marginal tax rate. However, employers often withhold at a flat supplemental rate (22% federal in the U.S.) when commission is paid separately from base salary. You may owe more or get a refund when you file your annual return depending on your total income.