Revenue Calculator // Online

Sales Commission Calculator.

A sales commission calculator models compensation across the five most common plan structures used by B2B sales organizations: flat rate, tiered or progressive, accelerator, draw against commission, and hybrid. Select your plan type and enter base salary, commission rates, bookings, and quota to see a full compensation breakdown with per-tier, per-band, or per-deal-type detail. Every tab includes OTE projections at eighty, one hundred, one hundred twenty, and one hundred fifty percent attainment, plus a monthly earnings visualization to help VP Sales and RevOps teams evaluate and compare compensation structures before rolling them out.

Revenue Calculator
Free Tool
COMMISSION
System Active
Flat Rate Commission

Total Comp = Base Salary + (Bookings x Commission Rate)

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How to Use

Get Started in 3 Steps

Step 01

Select Your Commission Structure

Choose from five compensation plan types: Flat Rate for simple percentage-based plans, Tiered for progressive rate structures, Accelerator for quota-based attainment bands, Draw for guaranteed monthly floor arrangements, or Hybrid for multi-deal-type compensation.

Step 02

Enter Compensation Details

Input your base salary, commission rates, bookings amounts, and quota targets specific to each plan type. For tiered and accelerator plans, customize the rate tiers or attainment bands. For draw plans, toggle between recoverable and non-recoverable and choose uniform or custom monthly distribution.

Step 03

Review Commission Breakdown and OTE Projections

See detailed breakdowns by tier, band, deal type, or month depending on your plan. Every tab includes OTE projections at eighty, one hundred, one hundred twenty, and one hundred fifty percent attainment so you can model compensation across performance scenarios.

How It Works

Under the Hood

This calculator implements five distinct commission calculation engines, each following the exact math used by sales operations teams to model compensation plans. Flat rate multiplies total bookings by a single commission percentage. Tiered applies progressive rates where each tier only taxes bookings within its range. Accelerator converts attainment percentages to dollar breakpoints against quota, then applies piecewise rates to each band.

The draw against commission engine simulates a full twelve-month schedule tracking monthly bookings, earned commission, draw payments, and running balance. Recoverable draws accumulate a balance when earned commission falls below the draw amount, with surplus earnings in later months repaying the deficit. Non-recoverable draws simply pay the higher of the draw or earned commission each month with no balance tracking.

The hybrid engine calculates variable compensation across multiple deal types, each with its own bookings amount and commission rate. Variable attainment is computed as total variable earned divided by the variable target, providing visibility into how close the rep is to their expected variable compensation independent of base salary.

OTE projections for all five plan types model total compensation at eighty, one hundred, one hundred twenty, and one hundred fifty percent attainment. For plans with explicit quotas, bookings scale against the quota. For plans without quotas, the current bookings input serves as the one hundred percent baseline. This allows side-by-side comparison of how each plan structure rewards or penalizes performance at different attainment levels.

FAQ

Frequently Asked Questions

What are the most common sales commission structures?
The five most common sales commission structures are flat rate, tiered or progressive, accelerator, draw against commission, and hybrid. Flat rate pays a fixed percentage on all bookings regardless of volume. Tiered plans increase the rate as reps pass predefined revenue thresholds. Accelerator plans reward over-quota performance with escalating rates tied to attainment bands. Draw against commission provides a guaranteed monthly floor with the difference between the draw and earned commission tracked as a balance. Hybrid plans combine a base salary with variable compensation that applies different rates to different deal types such as new business versus renewals. The right structure depends on your sales motion, average deal size, and whether you want to incentivize volume, over-quota performance, or specific deal categories.
How do I calculate tiered or progressive commission?
Tiered or progressive commission applies each rate only to the bookings that fall within that tier range, similar to how income tax brackets work. For example, if your tiers are eight percent on the first five hundred thousand dollars, ten percent on five hundred thousand to one million, and twelve percent above one million, a rep who books eight hundred thousand dollars earns eight percent on the first five hundred thousand which is forty thousand plus ten percent on the remaining three hundred thousand which is thirty thousand, totaling seventy thousand in commission. This is different from a flat system where the highest rate would apply to all bookings. The progressive approach ensures that commission costs scale predictably with revenue and avoids the cliff effects that occur when reps barely cross a tier threshold.
What is a draw against commission and when should I use it?
A draw against commission is a compensation structure where sales reps receive a guaranteed monthly payment called the draw regardless of their actual commission earnings. There are two types: recoverable and non-recoverable. In a recoverable draw, months where earned commission falls below the draw create a negative balance that must be repaid from future months when earned commission exceeds the draw. In a non-recoverable draw, the rep keeps the draw amount even in low-earning months with no repayment obligation. Draws are most commonly used when onboarding new reps who need income stability while building their pipeline, in seasonal businesses where revenue fluctuates significantly month to month, or in enterprise sales with long cycles where commission timing is unpredictable.
How do accelerator commission plans work?
Accelerator commission plans increase the commission rate as a rep exceeds their quota, with each rate applying only to bookings within that attainment band. A typical structure might pay eight percent on bookings up to one hundred percent of quota, twelve percent between one hundred and one hundred twenty percent, sixteen percent between one hundred twenty and one hundred fifty percent, and twenty percent above one hundred fifty percent. The dollar breakpoints are calculated by multiplying each percentage threshold by the annual quota. For a one million dollar quota, the first band covers zero to one million at eight percent and the second covers one million to one point two million at twelve percent. The effective blended rate rises as attainment increases, creating a powerful incentive for reps to push past quota rather than sandbagging deals into the next period.
What is OTE and how is it different from base salary?
OTE stands for on-target earnings and represents the total compensation a sales rep should expect to receive when they hit one hundred percent of their quota or performance target. OTE is the sum of base salary plus expected variable compensation at target attainment. For example, if a rep has a seventy-five thousand dollar base and a seventy-five thousand dollar variable target, their OTE is one hundred fifty thousand dollars with a fifty-fifty base-to-variable split. OTE differs from base salary in that the variable portion is not guaranteed and fluctuates with performance. Most B2B SaaS companies target a fifty-fifty to sixty-forty base-to-variable split for account executives, with more aggressive splits for closing roles and more conservative splits for account management positions. Actual total compensation can exceed OTE significantly when accelerators reward over-quota performance.
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