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Commission Calculator
with Tiered & Accelerator Earnings

Calculate your sales commission for flat rate, tiered, gross margin, residual, and milestone structures. See total earnings, OTE, quota attainment, and how accelerators change your pay at 100%+.

Currency
💵
Commission Calculator
Base & Structure
$
Your fixed annual salary before commission. Enter 0 if commission-only.
type
Select your commission pay structure.
Sales & Commission Details
$
Total revenue or deals closed for the period.
%
Percentage of revenue paid as commission.
$
Your full-year sales target. Used to calculate quota attainment.
%
Higher rate applied to revenue above 100% of quota. Leave blank to use base rate.
$
Your total revenue for the period. Each tier applies to the revenue within that band.
FromUp to (blank = unlimited)Rate %
$
Total revenue billed to customers.
$
Direct cost. Commission applies to the gross margin (revenue minus cost).
%
Percentage of gross margin paid as commission.
$
Optional. Used to calculate quota attainment percentage.
$
Total monthly recurring revenue from your book of business.
%
Percentage of MRR paid as commission each month.
mo
Number of months to calculate commission for. Default 12 for annual.
$
Optional. New MRR added during the period earns a separate new-business uplift.
%
Higher rate applied to new MRR added this period (first month). Leave blank to use base rate.
$
Total value of the deal or milestone achieved.
%
Commission rate applied to the deal or milestone value.
$
Amount already advanced as a draw. Deducted from earned commission. Enter 0 if no draw.
no.
If you closed multiple identical deals, multiply the commission automatically.
Total Commission Earned
—
for the period
Total Earnings (OTE)
—
base + commission
Monthly Equivalent
—
OTE ÷ 12
Commission as % of OTE
—
variable share
Accelerator Earnings
—
above 100% quota
Effective Commission Rate
—
commission ÷ sales
Commission Breakdown
Commission at Different Sales Levels
Sales Commission Quota % OTE Eff. Rate
Earnings Breakdown
Base salary
Commission (at quota)
Accelerator earnings
✦ Cal, AI Explanation
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Your commission estimate is ready. Ask me how accelerators change your earnings, how to compare two comp plans, or what quota attainment percentage you need to hit your income goal.

💵 Commission structures

Flat rate — simplest. A fixed % on every dollar of revenue.
Tiered — different rates at different revenue bands. Incentivises pushing through thresholds.
Gross margin — commission on profit, not revenue. Discounting costs the rep directly.
Residual — ongoing commission on recurring revenue. Common in SaaS and insurance.
Accelerator — a higher rate kicks in above 100% of quota. The most powerful earnings lever.

Related Calculators

Total Compensation Calculator→ Annual Bonus Tax Calculator→ Gross to Net Calculator→ Net to Gross Calculator→

Related Guides

How Sales Commission Works→ OTE Explained→ Tiered Commission Structures→

How commission is calculated

Commission is a variable component of compensation that links pay to sales performance. The structure determines how much of each sale translates into earnings. Flat rate structures are predictable and easy to model. Tiered structures create stronger incentives at higher performance levels. Accelerators dramatically increase earnings above 100% of quota, making overperformance very lucrative.

On-target earnings (OTE)

OTE is the total compensation a sales representative expects to earn if they hit exactly 100% of quota. It combines base salary with the on-target commission. Understanding OTE and the split between base and variable helps you evaluate a compensation plan before accepting a role.

Quota attainment and accelerators

Most sales plans have a quota — a revenue target for the period. Below 100%, you earn commission at the base rate. Above 100%, many plans apply an accelerator: a higher commission rate on the overachieved revenue. For example, a plan paying 5% up to quota and 8% above quota means every dollar of overachievement earns 60% more commission per dollar than a dollar of standard-quota revenue.

StructureCommission baseBest forKey risk
Flat rateTotal revenueSimple, transparent plansNo incentive to push past quota
TieredRevenue within each bandRewarding high performersComplex to model in advance
Gross marginRevenue minus costDiscounting-prone industriesRep has less visibility of margin
ResidualMonthly recurring revenueSaaS, insurance, subscriptionsCommission depends on retention
MilestoneDeal or project valueEnterprise, project salesLumpy earnings, long cycles

Frequently Asked Questions

What is the difference between flat rate and tiered commission?+
A flat rate applies the same commission percentage to every dollar of revenue regardless of total. A tiered structure applies different rates to different revenue bands. For example, 3% on the first 200,000, then 5% on the next 300,000, then 7% above that. Tiered structures reward higher performance more generously and create strong incentives to push through tier thresholds.
What is an accelerator and how does it work?+
An accelerator is a higher commission rate that applies only to revenue above 100% of quota. For example, if your standard rate is 5% and your accelerator rate is 8%, you earn 5% on every dollar up to quota and 8% on every dollar above it. Accelerators make overperformance disproportionately rewarding and are the main way top salespeople earn significantly more than their OTE.
What is OTE and how is it calculated?+
OTE stands for on-target earnings. It is the total annual compensation you would earn if you hit exactly 100% of your sales quota. OTE equals your base salary plus the commission you would earn at 100% attainment. If your base is 60,000 and hitting quota earns 40,000 in commission, your OTE is 100,000. The base-to-variable split (60/40 in this example) reflects how much risk and upside the plan carries.
What is a draw against commission?+
A draw is an advance on future commission. Your employer pays you a set amount each month regardless of sales, and the draw is later recovered from earned commission. A recoverable draw must be repaid if your commission does not cover it. A non-recoverable draw is essentially a minimum salary guarantee. Draws are common in roles with long sales cycles where commission payments are infrequent.
Why is gross margin commission sometimes better than revenue commission?+
With revenue-based commission, a rep can discount heavily to close deals without directly reducing their own earnings, but the company profits less. Gross margin commission aligns rep and company interests more closely, since discounting reduces the margin that drives commission. It tends to produce better pricing discipline and higher average deal margins, though it requires more visibility into cost structures which many reps find complex.