Sales Commission Calculator

The Sales Commission Calculator works out how much commission is earned from a period of sales, with the option to apply a threshold so only sales above a target qualify. You enter total sales, the commission rate as a percentage, and a threshold below which no commission is paid, and the tool calculates the qualifying sales and the commission due. Many New Zealand commission plans only reward performance beyond a base expectation, so the threshold reflects the common rule that reps must clear a target before earning. Where there is no threshold you simply set it to zero and commission applies to all sales. This tool is handy for sales reps checking their own pay, for managers modelling plans and payouts, and for owners costing incentive schemes before they roll them out. Seeing the qualifying sales separately makes it clear how the threshold changes the reward, which is useful when designing a plan that motivates without overpaying. Good practice is to be clear about whether commission is calculated on revenue, gross profit or collected cash, since each gives a very different number and the wrong basis can encourage discounting or chasing unprofitable deals. Make the threshold and rate easy to understand, because a plan people cannot calculate in their head rarely drives behaviour. Pay promptly and align the timing with when the business actually receives the money. Treat the figure here as a clear estimate of a simple plan, and check it against your own contract terms, tiers and any caps or clawbacks before relying on it for pay.

Commission = (sales - threshold, min 0) x rate. Estimate only, not financial or tax advice.