Tool

Sales Commission Calculator

Calculate sales commission payouts cleanly — supports flat, tiered, and accelerator models.

Summary

Keep commission plans simple enough to explain in one page. Flat % works for most SMEs; tiered rewards stretch performance.

Base commission
Accelerator
Total payout

Common commission structures

  • Flat % — same rate on all revenue. Simple, fair, easy to explain.
  • Tiered — higher % at higher revenue bands. Rewards volume.
  • Accelerator over quota — standard % below quota, higher % above. Encourages exceeding target.
  • SPIFs / bonuses — one-off incentives for specific products or periods.

Design principles

  • Commission should be affordable at 100% quota attainment
  • Top performers should earn visibly more than average ones
  • Pay monthly, not quarterly, for motivation
  • Avoid clawbacks unless absolutely necessary — they kill morale

Frequently asked questions

Base salary + commission ratio?

Common SME split is 60/40 (base/variable) for field sales, 70/30 for inside sales. Adjust based on deal cycle length.

Next step

Keep exploring related resources to strengthen this area of the business.

See Sales Target Calculator
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