Sales Commission Calculator

To calculate sales commission, multiply your deal value by the commission rate percentage. For example, a $10,000 deal with 10% commission = $1,000. This calculator supports three structures: Flat Rate (fixed percentage on all deals), Tiered (increasing rates at revenue milestones), and Base + Commission (fixed salary plus commission on sales).

OTE stands for "On-Target Earnings," the total annual compensation a sales rep can expect to earn if they hit 100% of their quota. OTE typically includes base salary plus commission. For example, if you have a $60,000 base and can earn $60,000 in commission at quota, your OTE is $120,000.

A tiered commission structure pays higher commission rates as you reach certain revenue thresholds. For example: 5% on first $50K, 10% on $50K-$100K, and 15% above $100K. This incentivizes reps to sell more by increasing the reward for higher performance. Use the Tiered option in the calculator above to model your specific tiers.

Commission rates vary by industry and product. B2B software sales typically pay 5-15%, real estate 2.5-6%, insurance 5-10%, and retail 1-5%. Higher-ticket or complex sales often have lower percentages but higher dollar amounts. The best structure aligns your incentives with company goals and is competitive within your industry.

Dewx is an AI-powered business operating system with built-in CRM, pipeline tracking, and sales analytics. Track every deal, automate follow-ups, and get real-time visibility into your pipeline and commission earnings. Dew, your AI assistant, can even draft proposals and manage outreach, so you can focus on closing. Join the beta to see how Dewx streamlines your entire sales workflow.