PayTools

Tiered Commission Calculator

Calculate a tiered (graduated) sales commission using standard 5%/8%/10% brackets.

Gross pay, commission, and raise figures are calculated locally in your browser — no payroll numbers are uploaded.
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Try: Sale amount=120000 → $120,000, $8,500, 7.08%

How to use

Enter the total sale. Commission is calculated across brackets: 0–$50,000 at 5%, $50,000–$100,000 at 8%, and above $100,000 at 10%. The effective rate is shown so you can see the blended cost.

By Jordan Meyer, compensation writer

FAQ

Is a tiered commission better than a flat one?

Tiers reward larger deals with a higher rate above each threshold, so big closers earn more per dollar. A flat rate is simpler and predictable. Which is better depends on your sales mix.

Do I pay tax on commission?

Yes — commission is ordinary income and taxed like salary. The calculators here show gross commission; your take-home will be lower after tax.

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