Tiered Commission Schedule Calculator

About this calculator

A tiered commission schedule pays a sales rep a different commission rate depending on how much they've sold — a lower rate on the first tier of sales, then a higher rate that kicks in once they cross a threshold, rewarding reps who exceed their base target with a bigger cut on the incremental sales. This structure is common in sales compensation plans because it incentivizes pushing past quota rather than coasting once a minimum target is hit.

Calculating tiered commission correctly means applying each rate only to the portion of sales that falls within that tier, not the whole amount at the higher rate. This calculator takes your total sales, the tier threshold, and the two rates and returns the commission earned in each tier along with the total payout.