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Salary

Sales commission calculator

Commission earned, total pay and how much of your salary is variable.

Published by SolucionesAhora.com How we verify

Calculator inputs

Results

Enter your values and press “Calculate” to see the result.

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In short

What it calculates
Commission earned, total pay and how much of your salary is variable.
Formula used
Commission = sales × percentage ÷ 100
Example
£50,000 in sales at 3% with a £1,200 base and a £60,000 target:

Sales commission calculator

Base-plus-commission packages are hard to compare between offers. This calculator shows the commission, the total and what share of your pay depends on sales.

How it works

Commission is a percentage of the period's sales. Added to the base it gives total pay, and the ratio between them shows how much of your package is variable.

Formula

Commission = sales × percentage ÷ 100

Total = base + commission

Achievement = sales / target × 100

Worked example

£50,000 in sales at 3% with a £1,200 base and a £60,000 target:

Commission: £1,500
Total: £2,700
Achievement: 83.3%
Variable: 55.6% of pay

Explanation

Commission on margin aligns incentives better

Commission calculated on revenue pushes salespeople to sell volume at any price, even with discounts that leave the deal loss-making. Calculated on margin, the salesperson shares the company's interest in defending price. It is the change that does most to fix a badly incentivised sales force.

Variable weight depends on the sales cycle

In fast transactional selling, a high variable component is common because results depend heavily on individual effort. In complex, long sales with teams and multi-month cycles, an excessive variable creates anxiety and short-term behaviour without improving results.

Tiers change behaviour

A scheme with accelerators, where the percentage rises past target, motivates finishing the year strongly. But it also encourages pushing sales from one quarter into the next when the current target is already out of reach. It pays to review what behaviour the scheme actually produces.

When it is earned

Defining whether commission accrues on signature, on delivery or on payment avoids the commonest conflict: paying commission on sales later returned or never collected. Tying it to collection is the prudent choice for cash flow.

Frequently asked questions

What variable share is reasonable?

It depends on the sector. Pure sales roles can exceed 50%, while technical roles with a bonus usually stay below 20%.

Is commission based on revenue or margin?

Both schemes exist. If yours is margin based, enter the margin instead of the sales figure.

On revenue or on margin?

On margin aligns interests better, because it stops deals being sold at discounts that leave the company at a loss.

When should commission be paid?

Tying it to actual collection is most prudent, because it avoids paying for sales later returned or left unpaid.

Need to calculate something else?

These tools are often used alongside this calculator.

Annual salary

Convert your monthly pay into an annual figure, extra payments included.

Margin

A clear distinction between margin on price and markup on cost.

Break-even

Units and revenue needed to cover every cost.

Percentage

The four most common percentage calculations in a single tool.

Hourly rate

Turn your monthly salary into the real value of every hour you work.

Overtime

What your overtime hours should pay given the uplift that applies.