Business & pricing
Sales Commission Calculator
Work out a salesperson’s pay for the month. Enter sales, commission rate and basic salary, then add a target with an extra rate or fixed bonus to see total pay.
How to use the Sales Commission Calculator
- Enter total sales for the month.
- Enter the commission rate.
- Enter the basic salary.
- Optionally add a target, extra rate above it and a fixed bonus.
Formula
Example
Sales of Rs 15 lakh at 2% earn Rs 30,000 commission. Being Rs 3 lakh above a Rs 12 lakh target adds Rs 3,000 at 1% and a Rs 5,000 bonus. With a Rs 40,000 basic salary, total pay is Rs 78,000.
Designing a fair plan
- Keep the formula simple enough to explain in one line
- Set targets that are hard but possible
- Pay on collected money, not just invoices
- Write the plan down and share it with the team
Tracking automatically
A POS or sales system that records each salesperson’s sales can work out commission for the whole team at month end, without arguments.
Related free tools
Frequently asked questions
Should commission be on sales or profit?
Commission on profit protects your margin, because staff will not push heavy discounts. Commission on sales is simpler to track.
When should commission be paid?
Many businesses pay commission only after the customer pays, to avoid paying on sales that are never collected.
Results are estimates for planning. For tax, legal or religious decisions, confirm with a qualified person. Your inputs stay in your browser and are not sent to Soft2Cloud.