Business

Tiered Commission Calculator

Commission across accelerating tiers.

Enter your values

ⓘ Live results

Results
Total commission
$8,800.00
Base tier commission
$6,000.00
Accelerator commission
$2,800.00
Total earnings (OTE)
$56,800.00

Quick answer

Tiered commission pays higher rates on sales above each threshold, not on the whole amount.

Commission = Σ(band sales × band rate)

How to use the Tiered Commission Calculator

  1. 1Enter sales achieved and the quota.
  2. 2Enter base and accelerator commission rates.
  3. 3Add base salary for total earnings.

Worked example

Using the values the calculator loads with:

Inputs

  • Sales achieved185000 $
  • Quota150000 $
  • Base rate4 %
  • Accelerator rate8 %
  • Base salary48000 $

Results

  • Total commission$8,800.00
  • Base tier commission$6,000.00
  • Accelerator commission$2,800.00
  • Total earnings (OTE)$56,800.00

Frequently asked questions

Why use accelerators?

They keep top performers selling after quota is hit.

Is commission on revenue or profit?

Revenue is simpler; margin-based plans protect discounting.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.