Commission Calculator
Calculate flat rate or tiered sales commission. Determine commission amount, effective commission rate, and net amount after commission deduction.
✓ Runs in your browser · Updated 2026-03-31Enter values and click Calculate Commission to see results
What Is Sales Commission?
Sales commission is a payment made to a salesperson or agent based on the sales they generate. It can be calculated as a flat percentage of the total sale or using a tiered structure where different rates apply to different sales bands.
Flat vs Tiered Commission
Flat rate applies a single percentage to the entire sales amount. Tiered commission uses progressive rates—a lower rate on initial sales and higher rates as sales volume increases, incentivising higher performance.
Flat Commission = Sales Amount × Rate%
Tiered Commission = (Tier 1 Amount × Rate 1) + (Tier 2 Amount × Rate 2) + (Remaining × Rate 3)
Effective Rate = (Total Commission / Sales Amount) × 100
Tiered Commission Example
If sales are ₹7,00,000 with tiers: up to ₹1L at 3%, ₹1L–₹5L at 5%, above ₹5L at 8%, the commission would be ₹3,000 + ₹20,000 + ₹16,000 = ₹39,000 (effective rate: 5.57%).
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Frequently Asked Questions
How does tiered commission work?
Tiered commission applies different rates at different sales levels. For example: 5% on the first ₹1 lakh, 8% on ₹1-3 lakh, 12% above ₹3 lakh. Only the amount in each tier is charged at that tier's rate.