# Commission Calculator

> Commission calculator: break down sales commissions by flat rate, tiered thresholds, or progressive brackets. Free, private, runs in your browser, no signup.

- **Canonical URL:** https://boringtoolskit.com/commission-calculator/
- **Category:** Seller & Business
- **Evidence level:** authored-methodology
- **Reviewed:** July 2026
- **Last verified:** 2026-09-20
- **Privacy:** Inputs and results stay in this browser unless the page clearly labels an external request.

## How it works

Flat mode multiplies all sales by one rate. Threshold mode multiplies only sales above the threshold. Progressive tier mode applies each tier rate only to the sales amount inside that tier, then sums the tier commissions.

## Worked example

For $40,000 in sales with 3% on the first $10,000, 5% from $10,000 to $25,000, and 7% above $25,000, commission is $300 + $750 + $1,050 = $2,100, an effective rate of 5.25%.

## Assumptions

- Tiered mode is progressive and does not retroactively apply the highest reached rate to all sales.
- Threshold mode pays only on the portion above the entered threshold.
- Payroll tax, draws, caps, bonuses, returns, clawbacks, and contract eligibility are excluded.

## Common questions

### How do you calculate flat commission?

Multiply total sales by the flat commission rate, then divide by 100. The same rate applies to every dollar of sales.

### How does threshold commission work?

Sales below the threshold use the lower rate. At or above the threshold, the higher rate applies to the eligible sales defined by the plan.

### How is tiered commission calculated?

Each rate applies only to the portion of sales within its tier. Add the commission from every tier to get total commission.

## Related tools

- /freelance-hourly-rate-calculator/
- /paycheck-calc/
- /profit-margin-markup-calculator/

## Sources

- [Fact Sheet #17F: Exemption for Outside Sales Employees](https://www.dol.gov/agencies/whd/fact-sheets/17f-overtime-outside-sales)

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