Tiered Commission Calculator: Graduated or Whole Amount
Work out commission on tiered rates, such as 5% up to 10,000 and 7% above. Choose graduated bands or one rate on the whole sale, and see the commission on every tier.
Graduated: each rate applies only to the part of the sale inside its tier.
The tiers start as an example: replace the limits and rates with your own plan's.
Type the sale amount to see the commission.
About the Tiered Commission Calculator
The Tiered Commission Calculator works out commission on a plan whose rate rises as sales grow. It opens with three example tiers, 5 percent up to 10,000, 7 percent up to 25,000 and 10 percent above that, and the Graduated method selected. Replace the example with your own plan: change the limits and rates, add tiers up to ten, or remove the ones you do not need. The last tier has no upper limit and covers everything above the tier before it.
There are two ways tiers can apply, and they give very different totals. Graduated tiers apply each rate only to the slice of the sale inside its tier, like income tax brackets. Whole amount tiers, sometimes called retroactive tiers, apply the rate of the tier the sale reaches to the entire sale, so crossing a limit lifts the commission on everything. The results show the total, the effective rate and a table of the commission on each tier. Each tier rounds once to the cent, half up, and the total is the sum of the rounded tiers.
How to use it
Steps
- Type the sale amount.
- Edit each tier's upper limit and rate (%). Each limit must be above the one before it.
- Choose Graduated or Whole amount and read the commission and the table.
The formula
For graduated tiers with limits and rates , on a sale :
For whole-amount tiers, , where is the tier the sale reaches. A limit belongs to its own tier, so a sale exactly on a limit is paid at the lower rate.
Worked examples
- 8,000 with either method. The sale stays in the first tier: .
- 30,000 graduated. , or 6.83 percent of the sale.
- 30,000 whole amount. , or 10 percent.
- One cent over a limit. 10,000.01 pays 500.00 graduated but 700.00 whole amount, because the whole sale moves to the 7 percent tier.
Assumptions
The tiers are an example, not a real plan; commission plans differ. The result is gross commission before tax and leaves out base pay, draws and splits, so treat it as an estimate. For a single rate, the full Commission Calculator has a flat-rate mode. To see the margin on what you sell, use the Profit Margin Calculator.
Privacy
Nothing is uploaded; every calculation runs in your browser and never leaves your device. The sales, limits and rates you type stay on this page and are gone when you close or reload it.
Frequently asked questions
How do I calculate graduated tiered commission?
Split the sale into the bands of each tier and apply each rate to its own band, then add the results. With 5 percent up to 10,000, 7 percent up to 25,000 and 10 percent above, a sale of 30,000 earns 500 + 1,050 + 500 = 2,050.00.
How does whole-amount tiered commission work?
Find the tier the total sale reaches and apply that rate to the whole sale. A sale of 30,000 reaches the 10 percent tier, so it earns 3,000.00. This method pays a jump in commission each time a limit is crossed.
How many tiers can I add?
Up to 10. The last tier has no upper limit and covers everything above the tier before it. Press Add a tier to insert one before the last, and use the remove buttons to delete tiers you do not need.
Why do my tiers show an error?
Each upper limit must be above the one before it, and every tier except the last needs a limit. A limit belongs to its own tier, so a sale exactly on a limit is paid at the lower rate.
Are the starting tiers a real plan?
No. They are an example to show how the calculator works. Replace the limits and rates with the ones in your own commission plan. The result is gross commission before tax and leaves out base pay, draws and splits.