What is a tiered commission structure?

In a tiered structure the commission rate changes as revenue crosses defined thresholds. For example, 5% on the first $50,000 and 8% on revenue above that. Each dollar is taxed at the rate of the tier it falls in.

How does the calculator handle the last tier?

The final tier is open-ended — all revenue above its lower bound earns at that rate. You do not need to enter an upper limit for the last tier.

Can I add or remove tiers?

Yes. Use the "+ Add Tier" button to insert up to six tiers, or the remove button on any row to delete a tier. A minimum of one tier is required.

Are my numbers stored anywhere?

No. All calculations happen in your browser. Nothing is sent to any server.

How do you calculate sales commission?

For a flat plan, multiply total sales by the commission rate (e.g. $120,000 × 5% = $6,000). For a tiered plan, split sales across each bracket and apply that bracket's rate to the portion of revenue inside it, then add the tiers together. This calculator does that split automatically and shows the blended effective rate.

Commission Tier Calculator

Name: Commission Tier Calculator
Availability: InStock
Author: Nham Vu

Enter your total sales revenue and configurable tier brackets to instantly see your commission payout broken down by tier.

Commission Plan Setup

Total Sales Revenue ($)

Tiers (up to 6)

Up to ($) Rate (%)

Enter your revenue and tier rates, then click Calculate.

Total Commission

$0.00

Effective Rate

0.00%

Breakdown by Tier

Tier	Range	Rate	Revenue in Tier	Commission

Revenue Allocation

Summary

Enter your total sales revenue and configurable tier brackets to instantly see your commission payout broken down by tier.

How it works

Define up to six revenue tiers by entering the upper limit and commission rate for each bracket.
Enter your total sales revenue for the period.
Click "Calculate" to see the payout breakdown.
Each row shows how much of your revenue falls in that tier and the commission earned.
The summary card displays your total commission and effective blended rate.

Use cases

Sales reps verifying their paycheck against a tiered comp plan.
Sales managers modeling different tier structures before rolling out a new plan.
Founders designing a first commission structure for their sales team.
Finance teams auditing commission expenses for a pay period.

Frequently Asked Questions

Last updated: 2026-06-25 · Reviewed by Nham Vu