Most sales compensation plans pay a commission rate on sales up to a quota and a higher accelerator rate on everything above it. That makes the math less obvious than a single percentage. This calculator splits your sales at the quota, applies each rate, and shows total pay and the effective rate you actually earned.
How it works
Sales up to quota earn the base commission rate. Sales above quota earn the accelerator rate. With a $120,000 quota at 8% and 12% above, $150,000 of sales earns 8% × $120,000 plus 12% × $30,000.
Set the quota to 0 for a flat commission on all sales. Some plans also use decelerators below a threshold, or pay nothing until a minimum is reached; model those by adjusting the rates.
The effective commission rate is total commission divided by total sales. Above quota it climbs above the base rate, which is the point of an accelerator.
Commission is usually taxable income like salary. Check your plan document for how returns, cancellations and multi-year deals are credited, since those change the sales figure.
A worked example
A rep with a $120,000 quota sells $150,000 in the quarter. The first $120,000 earns 8% ($9,600) and the $30,000 above quota earns 12% ($3,600), so commission is $13,200. With a $15,000 base, total pay is $28,200, attainment is 125%, and the effective commission rate is 8.8%.
Questions people ask
How is sales commission calculated?
Multiply the sales credited to you by your commission rate. With tiers, apply each rate only to the sales within its tier, then add the results.
What is a commission accelerator?
A higher commission rate on sales above quota. It rewards reps who exceed their target and makes each extra sale worth more once quota is reached.
What is a typical commission rate?
It varies widely by industry, deal size and how much of pay is base salary. Plans with a high base usually pay lower rates. Compare offers on total expected pay at realistic attainment, not the headline rate.
What does quota attainment mean?
Sales as a percentage of quota. $150,000 against a $120,000 quota is 125% attainment.
Is commission taxed differently from salary?
In most countries it's taxed as ordinary employment income, though some employers withhold at a different rate when it's paid separately. The final tax is settled when you file.