Commission Calculator

TL;DR

Compute commission as: base_amount + (sales_amount × commission_rate).

Useful for sales contractors and anyone validating compensation plans.

Who this is for

• Anyone on a commission plan who wants to sanity-check a month.
• Contractors mixing a base fee + % of revenue.
• Anyone comparing two offers with different commission structures.

How to use it

1. Enter sales amount for the period.
2. Enter commission rate (%).
3. Enter base amount (if you have one).

How commission plans usually work (in plain English)

Most plans have a few moving parts:

• Base: guaranteed pay (sometimes called fixed fee/draw/salary).
• Commission rate: percentage applied to a defined “sales amount”.
• Commissionable amount definition: revenue, margin, collected cash, invoiced amount, etc.
• Timing: when commission is earned and paid (invoice date vs payment date).

This calculator covers the common “base + %” core. For anything more complex, you can still use it by splitting the calculation into pieces.

Worked examples

Example 1: simple percentage

Sales 10,000, rate 5%, base 0 → 500.

Example 2: base + percentage

Sales 10,000, rate 5%, base 1,000 → 1,500.

Example 3: compare two plans

Run scenario A vs B and compare total comp, then consider caps and thresholds manually.

Example 4: tiered plan (manual split)

If your plan is 5% up to 10,000 and 8% above:

• compute 10,000 at 5%
• compute (sales − 10,000) at 8% Then add them together (and add base if applicable).

Gross vs net (don’t mix them)

Commission is often quoted as a gross number, but what you receive depends on taxes and your employment/contract setup. Be explicit:

• Are you modeling gross commission or net take-home?
• Are you paid as an employee or as a contractor (B2B)?

If you’re in Romania and need take-home modeling, pair this with tax tools:

• Estimate take‑home (2025) (employment context)
• PFA/SRL scenario check (2025) and Estimate PFA taxes (2025) (contracting context)

Gotchas

• Some plans have tiers, caps, clawbacks; this tool is the simple base case.
• “Sales amount” can mean revenue, margin, collected cash, or invoiced value — always confirm the definition.
• Payout timing matters: a plan can look great on paper but pay late (after cash collection).

Common plan features (how to model them)

Caps and thresholds

If commission starts only after a threshold, subtract the threshold from the sales amount and compute commission on the remainder. If there’s a cap, compute normally and then cap the result at the maximum.

Clawbacks (refunds/cancellations)

If your plan has clawbacks, keep a separate “negative bucket” for the month where refunds happen. The math is simple, but the timing can be painful — clarify this before you sign.

Draws

Some plans pay a draw (advance) that is reconciled later. Treat the draw as cashflow, not as extra income, and ask how reconciliation works.

FAQ

What if my plan has a quota or accelerator?

You can still model it by splitting: compute commission below quota and above quota separately (different rates), then add them up.

What should I clarify before accepting a commission offer?

• what is commissionable (revenue vs margin vs collected cash)?
• when is commission paid?
• are there clawbacks (refunds, cancellations)?
• is there a cap or a minimum threshold?

What next?

If you track activity and revenue in a spreadsheet, consider keeping a monthly summary and using this tool as a quick validation step.

Related tools

• Estimate take‑home (2025)
• PFA vs SRL decision (2025) Estimate PFA taxes (2025)

Next steps (IT Jobs List)

For commission, test multiple scenarios: on-target, above-target, caps, and bonuses.

Quick recommendation

• Save your assumptions (rates, breaks, thresholds) so you can reproduce the result.
• If you use the output in an invoice/offer, include a short explanation (what’s included and what’s not).

Practical checklist (IT Jobs List)

• Verify rules: thresholds, caps, bonuses, accelerators.
• Run scenarios: 80%, 100%, 120% of target.
• Confirm whether the base is net sales, gross sales, or profit.