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.
$165,000.00: 50,000 of base plus $115,000.00 of commission. You are over quota, so 500000 of sales earned the accelerated rate. Your effective commission rate across all sales is 5.75%.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
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)
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 · United States · 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.