Sales Commission Calculator
Calculate commission across progressive tiers, tax-bracket style.
Tier 1
Tier 2
Tier 3 (everything above)
Every calculation runs locally in your browser. Nothing you enter here is sent to a server or stored anywhere.
Total commission
$2,300
Effective rate
7.67%
For informational and educational purposes only — not financial, investment, or tax advice, and not a substitute for consulting a qualified professional about your specific situation. TrueMeasureKit is not liable for decisions made based on these results. See our Terms of Service.
Why the effective rate is lower than the top tier
A progressive commission structure works exactly like a progressive tax bracket — reaching the top tier doesn't mean every dollar earns the top rate, only the dollars within that tier do. Someone who hits the 12% tier is still earning 5% on their first $10,000 and 8% on the next slice, which is why the effective (blended) rate on total sales always lands below the highest tier's rate.
Frequently asked questions
How does tiered commission work?
Like a tax bracket: each portion of sales within a tier earns that tier's rate, not the whole amount at the highest rate reached — so crossing into a higher tier only raises the rate on sales above that threshold.
Does this account for a draw against commission?
No — it calculates commission earned from sales volume and tier rates only. A draw (an advance recovered from future commissions) is a separate arrangement between you and your employer.