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Commission Calculator

Work out sales commission under flat, tiered or slab rates, with each band shown.

By Nitin Raturi · Last reviewed

Your sales and plan

How to use the Commission Calculator

Work out a sales commission under flat, tiered or slab rules.

  1. Enter the sales for the period.
  2. Choose flat, tiered or slab, as your plan describes.
  3. Enter the rates and, for tiers, the two thresholds.
  4. Read the commission, the effective rate and the other two methods for comparison.

Good to know

  • Commission is shown before TDS or other deductions.
  • Slab plans jump at each threshold; tiered plans do not.

Sales

The sales value the commission is paid on, for the period your plan uses.

How to fill it in

  • Enter an amount in rupees. Short forms such as 8L or 1.5 cr work.

Example

₹8,00,000 on the default tiers earns ₹34,000.

Commission type

Commission type

How the rate is applied to the sales.

How to fill it in

  • Flat: one rate on all sales.
  • Tiered: each band’s rate on the part of sales inside that band.
  • Slab: the rate of the highest band reached, on all sales.

Example

On ₹8,00,000: flat ₹16,000, tiered ₹34,000, slab ₹48,000.

Keep in mind: Plans name these differently. Check how your contract applies the rates.

Rate up to the first threshold

The commission rate on the first band; for flat commission, the only rate.

How to fill it in

  • Enter 0% to 100%.

First threshold

Where the first band ends and the second rate starts.

How to fill it in

  • Enter a sales amount in rupees.

Example

With slab commission, ₹1,99,999 earns ₹4,000 but ₹2,00,000 earns ₹8,000.

Rate in the second band

The rate between the first and second thresholds.

How to fill it in

  • Enter 0% to 100%.

Second threshold

Where the second band ends and the top rate starts.

How to fill it in

  • Enter an amount above the first threshold.

Rate above the second threshold

The rate on sales above the second threshold.

How to fill it in

  • Enter 0% to 100%.

Tiered commission

₹34,000.00

₹8,00,000 of sales earns ₹34,000.00, an effective rate of 4.25%.

₹0 to ₹2,00,000 at 2%
₹4,000.00
₹2,00,000 to ₹5,00,000 at 4%
₹12,000.00
Above ₹5,00,000 at 6%
₹18,000.00
Flat at the first rate
₹16,000.00
Slab on the same rates
₹48,000.00

Before TDS, GST or other deductions. A sale exactly on a threshold counts as reaching it.

ChangelogHow we test this calculatorEmbed this calculator

How this calculator works

  1. Step 1Flatsales × rateOne rate on every rupee of sales.
  2. Step 2Tieredrate per bandEach band’s rate applies only to sales inside it.
  3. Step 3Slabtop band × allReach a band and its rate applies to all sales.

Commission is a rate times sales. Plans differ in which rate applies to which rupee. The calculator works out all three on your rates, so you can see the gap.

Worked example: ₹8 lakh of sales, tiered

2% to ₹2 lakh, 4% to ₹5 lakh, 6% above
Tiered
Σ band rate × sales inside the band
  1. ₹0 to ₹2,00,000₹2,00,000 × 2%₹4,000
  2. ₹2,00,000 to ₹5,00,000₹3,00,000 × 4%₹12,000
  3. Above ₹5,00,000₹3,00,000 × 6%₹18,000
  4. Commission₹34,000

That is an effective rate of 4.25% on ₹8,00,000. Only the last ₹3 lakh earns the top 6%.

The same sales, three answers

  • Flat at 2%₹16,000The first rate on all sales.
  • Tiered₹34,000Each band at its own rate.
  • Slab₹48,000All sales at 6%, the rate of the band reached.

Read the result

Slab plans jump at each threshold: ₹1,99,999 earns ₹4,000, but ₹2,00,000 earns ₹8,000.

Tiered plans rise smoothly, so one extra sale never changes the rate on earlier sales. Check which kind your contract uses before comparing offers.

Assumptions and limits

  • Three bandsTwo thresholds, three rates.
  • On the lineSales exactly at a threshold reach it.
  • Before deductionsTDS and GST are not subtracted.
  • No targetsBonuses, caps and clawbacks are not modelled.

Commission depends on sales. Pricing and costs decide how much those sales earn.

To set a selling price from cost, use the margin and markup calculator. The break-even calculator finds the sales that cover fixed costs, and the salary calculator converts pay between periods.

Common mistakes

  • Mistake: Applying the top rate to all sales in a tiered plan.

    Instead: Apply each rate only to its band.

  • Mistake: Comparing plans on their top rate alone.

    Instead: Compare the commission on your expected sales.

  • Mistake: Forgetting TDS on commission.

    Instead: Expect the amount paid to be lower than shown.

Checking the method

A separate script re-works every golden value in exact fractions, walking the sales band by band.

Read how we test our calculators, or browse more money calculators.

Frequently asked questions

How is commission calculated?

Multiply sales by the rate. ₹8,00,000 at a flat 2% is ₹16,000.

What is tiered commission?

Each band of sales earns its own rate. ₹8,00,000 at 2%, 4% and 6% across ₹2 lakh and ₹5 lakh earns ₹34,000.

What is slab commission?

The rate of the highest band reached applies to all sales, so the same sales earn ₹48,000.

Why does slab commission jump at a threshold?

Crossing it changes the rate on every rupee: ₹1,99,999 earns ₹4,000, ₹2,00,000 earns ₹8,000.

Is TDS deducted?

No. The figure is before TDS, GST or other deductions.

Sources and methodology

The formulas are standard time-value-of-money results. We check every figure against golden values worked out independently, by closed form and by month-by-month simulation; see the methodology.

Written and maintained by Nitin Raturi, a software engineer (about the author). Last reviewed 4 Nov 2026; next review due by . Found an error? Tell us.

Changelog

  • : Initial release.

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