Commission Calculator Estimate earnings under straight, tiered, base+commission, or recurring models — with 2025 benchmar...
Commission Calculator
Estimate earnings under straight, tiered, base+commission, or recurring models — with 2025 benchmarks and quota insights.
Straight Commission**:
$$ Commission = Sales \times Rate $$
Tiered Commission**:
$$ Commission = \sum (Tier\ Sales \times Tier\ Rate) $$
Base + Commission**:
$$ Earnings = Base + (Min(Achieved, Quota) \times OTR) + Bonus $$
Example** ($150K sales, 5% ≤$50K, 7% ≤$100K, 10% >$100K): • Tier 1: $50K × 5% = $2,500 • Tier 2: $50K × 7% = $3,500 • Tier 3: $50K × 10% = $5,000 → **$11,000 commission** (7.33% effective)
✅ Pro Tip**: Tiered plans boost motivation — 100K → 101K can trigger $1,000+ bonus jump.
⚠️ Avoid these dangerous traps:
- Uncapped clawbacks** — “We’ll take back 100% if client churns in Year 1” (common in SaaS)
- Vague “discretionary” bonuses** — “Up to 5%” with no written criteria
- No written plan** — Verbal promises = unenforceable
- Accelerator resets** — “1.5x after 120%” but quota jumps 20% next year
✅ Pro Tips**:
- Get plan in writing *before* accepting offer
- Model worst-case (80% quota) and best-case (150%)
- Negotiate draw forgiveness terms** (e.g., 50% forgiven after 12 mos)
| Role | Structure | $250K Sale | Effective Rate |
|---|---|---|---|
| SaaS AE | 10% ≤$100K, 12% >$100K | $28,000 | 11.2% |
| Real Estate | 3% (50% to agent) | $3,750 | 1.5% |
| Insurance | 15% + 3% × 5 | $3,750 | 1.5% upfront |
| Recruiter | 20% of salary | $24,000 | 20% |
📉 Tiered Impact** ($250K sales):
- Straight 8%: **$20,000**
- 5%/7%/10%: **$21,000** (+$1K)
- 5%/8%/12%: **$23,500** (+$3.5K)
📉 Quota Bonus Example** ($300K quota, $360K achieved): • 120% attainment → +10% bonus = **$3,000 extra** on $30K commission
➡️ Straight Commission
“$250K SaaS deal @ 12% — what’s my commission?” → **$30,000**
➡️ Tiered Commission
Model 5%/7%/10% structure — see how $150K → $151K triggers tier jump.
➡️ Base + Commission
“$50K base, $300K quota, 10% OTR, 120% attainment” → **$83,000 total**
➡️ Recurring Commission
“$10K policy @ 15% + 3% × 5 yrs” → **$2,250 + $1,500 = $3,750**
Note: Uses exact tiered and quota math. Assumes no clawbacks unless modeled separately.