What is an accelerator worth?

Everything above quota. On a plan paying 5% to quota and 8% beyond, the sale that takes you from 100% to 110% of quota is worth sixty percent more per rupee than the ones before it.

Businesssales

Commission Calculator

Commission with an accelerator above quota, which is how most plans actually work. The effective rate across all sales is shown, since that is the number a plan is usually judged on.

Also called: sales commission calculator, ote calculator.

Total earnings

₹1,65,000

₹1,65,000: 50,000 of base plus ₹1,15,000 of commission. You are over quota, so 500000 of sales earned the accelerated rate. Your effective commission rate across all sales is 5.75%.

Commission earned

₹1,15,000

On sales up to quota

₹75,000

On sales above quota

₹40,000

Quota attainment

133.33%

Effective rate on all sales

5.75%

Against quota

You are over quota, so 500000 of sales earned the accelerated rate.

How this is calculated

An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.

Method and background

How this is calculated

Sales up to quota earn the base rate and everything beyond earns the accelerated one, so the effective rate rises with attainment. That structure is deliberate: it makes the marginal sale worth more precisely where the plan wants effort. Setting the accelerator equal to the base rate turns it into a flat plan, which is the comparison worth running before signing.

commission = base rate on sales up to quota + accelerated rate on everything above

S: Sales (currency)
Q: Quota (currency)
r_a: Accelerated rate (decimal)

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

over quota with an accelerator

Sales made: ₹20,00,000
Commission rate: 5%
Base salary for the period: ₹50,000
Quota for the period: ₹15,00,000
Rate above quota: 8%

Total earnings₹1,65,000

5% of 15L plus 8% of 5L, worked by hand

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below quota earns the base rate only

Sales made: ₹10,00,000
Commission rate: 5%
Base salary for the period: ₹50,000
Quota for the period: ₹15,00,000
Rate above quota: 8%

Total earnings₹1,00,000

boundary

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no sales earns only the base salary

Sales made: ₹0
Commission rate: 5%
Base salary for the period: ₹50,000
Quota for the period: ₹15,00,000
Rate above quota: 8%

Total earnings₹50,000

degenerate case

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Method and limits

What it assumes

One quota period, with commission paid on booked sales.

What it deliberately does not model

Clawbacks, draws against commission and multi-tier accelerators are common and are not modelled.
Commission on margin rather than revenue is a different plan and needs the margin figure instead.

Formula version 1.0.0 · definition 1.0.0 · India · Report a problem with this calculator

Frequently asked questions

What is an accelerator worth?: Everything above quota. On a plan paying 5% to quota and 8% beyond, the sale that takes you from 100% to 110% of quota is worth sixty percent more per rupee than the ones before it.