What is a Commission Calculator?
A Commission Calculator helps sales professionals calculate their earnings based on sales performance. Whether you have a flat rate, tiered structure, or accelerator-based commission plan, this tool gives you instant projections of your total earnings.
Types of Commission Structures
- Flat Rate: A fixed percentage of all sales (e.g., 8% of total sales)
- Tiered Commission: Different rates for different sales brackets (e.g., 5% up to ₹1L, 8% from ₹1L to ₹3L, 12% above ₹3L)
- Accelerator: Rate multiplier kicks in after hitting quota (e.g., 1.5x commission rate after quota)
How to Calculate Commission
For flat rate: Commission = Sales Amount x Commission Rate
For tiered: Calculate commission for each tier separately and sum them up.
For accelerator: Normal rate until quota, then multiplied rate for excess sales.
Frequently Asked Questions
What is an effective commission rate?
The effective rate is your total commission divided by total sales, expressed as a percentage. It helps you understand your actual earnings rate across all tiers.
What is a quota bonus?
A quota bonus is an additional payment you receive when you meet or exceed your sales quota. It's separate from your regular commission earnings.
How does accelerator commission work?
With accelerator commission, your commission rate increases (multiplied by a factor) after you hit your quota. This incentivizes exceeding targets.