Sales commission calculator
Commission plans are piecewise linear. The accelerator above quota is the part people get wrong.
%
%
Commission earned
26 400.00
- Commission up to quota
- 20 000.00
- Accelerated commission
- 6400.00
- Quota attainment
- 120.00 %
- Total compensation
- 81 400.00
- Effective commission rate
- 5.500 %
Show the working
- Sales achieved = 480 000
- Quota = 400 000
- Commission rate to quota = 5
- Rate above quota = 8
- Base salary = 55 000
- to_quota = min(480 000, 400 000) = 400 000
- above_quota = max(480 000 - 400 000, 0) = 80 000
- Commission up to quota = 400 000 * 5/100 = 20 000
- Accelerated commission = 80 000 * 8/100 = 6400
- Commission earned = 20 000 + 6400 = 26 400
- Quota attainment = 480 000 / 400 000 * 100 = 120
- Total compensation = 55 000 + 26 400 = 81 400
- Effective commission rate = 480 000 > 0 ? 26 400/480 000*100 : 0 = 5.5
Values are shown to six significant figures here; the arithmetic itself runs on exact fractions and is only rounded where a number is printed.
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The formula
- commission = min(sales, quota) x base rate + max(sales - quota, 0) x accelerator