About this calculator
Work out how much commission a sale or a month of sales earns. Choose a flat rate, a tiered plan where the rate rises as sales grow, or work backwards from the commission you want to earn.
The tiered option shows each band separately, so you can see exactly where the money comes from.
Worked examples
Real numbers, worked out by the same calculator. Press “Use these numbers” to try one above.
5% on £50,000 plus £2,000 base pay
- Commission
- £2,500.00
- Base pay plus commission
- £4,500.00
5% of £50,000.00 is £2,500.00; with £2,000.00 base pay that's £4,500.00.
Tiered: 2% to £50k, 5% to £100k, 8% above, on £120k
- Total commission
- £5,100.00
- Band 1 (first £50,000.00 at 2%)
- £1,000.00
- Band 2 (£50,000.00 to £100,000.00 at 5%)
- £2,500.00
- Band 3 (above £100,000.00 at 8%)
- £1,600.00
- Overall rate
- 4.25%
On £120,000.00 of sales you earn £5,100.00, an overall rate of 4.25%. Each rate only applies to the sales inside its own band.
How much to sell for £3,000 at 5%?
- Sales needed
- £60,000.00
To earn £3,000.00 at 5% commission you need to make £60,000.00 of sales.
How commission is calculated
Flat rate: commission = sales × rate. 5% of £50,000 is £2,500. Add any base pay to get the total.
Tiered: each rate applies only to the sales that fall inside its band. On £120,000 with 2% to £50,000, 5% from £50,000 to £100,000 and 8% above: £1,000 + £2,500 + £1,600 = £5,100, an overall rate of 4.25%.
Sales needed: target commission ÷ rate. £3,000 at 5% needs £60,000 of sales.
Marginal or retroactive: check your plan
This calculator uses marginal bands, where a higher rate only applies to the extra sales above each threshold. Some plans are retroactive: once you pass a threshold, the higher rate applies to all of your sales. The two give very different answers near a threshold, so check which one your plan uses. If yours is retroactive, use the flat rate option with the rate you've reached.
Points to check in a commission plan
- Is commission paid on revenue, on profit, or on money actually received?
- Is it calculated before or after VAT, discounts and refunds?
- Are there caps, clawbacks or minimum targets?
- When is it paid: when the sale is made, invoiced, or paid by the customer?
Frequently asked questions
How do I calculate commission?
Multiply the sales figure by the commission rate. 5% of £50,000 is 50,000 × 0.05 = £2,500.
How does tiered commission work?
The sales are split into bands, and each band has its own rate. Only the sales inside a band earn that band's rate. Add up the commission from each band for the total.
What's the difference between marginal and retroactive commission?
Marginal pays the higher rate only on sales above the threshold. Retroactive pays the higher rate on all sales once you pass it. Check your plan to see which applies.
How do I work out the sales I need for a target?
Divide the commission you want by the commission rate as a decimal. To earn £3,000 at 5%, you need £3,000 ÷ 0.05 = £60,000 of sales.
Is commission calculated before or after tax?
Commission is usually quoted before tax, then taxed as earnings. This calculator shows the gross figure.
Formulas tested against hand-worked answers. Last reviewed 29 September 2026. These calculators do arithmetic only; they are not financial, tax or legal advice.