Flat rates, marginal or retroactive tiers, quota accelerators, splits and draws. Every line says why it pays what it pays, and the link keeps your numbers so you can share the calculation.
credited sales $12,000.00
Run this for the whole team, every month. Import a CSV of deals, and every rep gets a statement with these explanations.
Start free →Commission is the commissionable amount times the rate: deal amount × commission rate. A $12,000 deal at 8% pays $12,000 × 8% = $960. Some plans pay on gross margin instead of revenue, so a $12,000 sale with $4,000 of margin at 20% pays $800.
Most plans add one or more of these on top:
Take a plan that pays 5% up to quota and 8% above it, a $50,000 quota and $56,000 of sales.
Marginal tiers work like tax brackets: each slice earns its own rate. Retroactive tiers pay the rate of the highest tier reached on every deal in the period, which is why the last deal of the month can be worth far more than its own size. Neither is wrong, but the plan must say which one applies. Open this example in the calculator.
Want the full picture of each structure, with the math? Read sales commission structures, with worked examples.
Multiply the commissionable amount (the deal amount, or the margin if the plan pays on margin) by the commission rate. A $12,000 deal at 8% earns $960. Tiered plans change the rate as the rep's sales or quota attainment grows.
With marginal tiers each slice of sales earns its own tier's rate, like income tax brackets. With retroactive tiers the rate of the highest tier reached applies to every deal in the period, so crossing a threshold raises the commission on earlier deals too. The calculator shows both side by side.
Credited sales divided by quota. $56,000 of sales against a $50,000 quota is 112% attainment. Accelerators and tier thresholds are usually set in attainment, such as a higher rate above 100%.
A deal is credited to several reps by percentage, for example 60/40. Each rep's commission is calculated on their share of the deal, and the shares count toward each rep's own quota.
A guaranteed minimum payout. If commission falls short of the draw, the rep is paid the draw and the difference is owed back from later earnings above the draw. A non-recoverable draw tops the rep up without creating a balance.
Yes. The calculator runs the same calculation engine that produces statements inside Vexquota, including the explanation written for every line.