Commish › Commission rate calculator
Commission rate calculator
Your commission rate is the commission paid divided by the sales it was paid on. $18,000 on $240,000 of sales is a 7.5% rate.
Formula
Commission rate = Commission ÷ Sales Implied rate at quota = Variable pay at 100% ÷ Quota
Example
Your statement shows $18,000 in commission on $240,000 of sales: $18,000 ÷ $240,000 = 7.5%.
Your plan pays $90,000 variable at a $900,000 quota: $90,000 ÷ $900,000 = 10%. If you were expecting 10% and got 7.5%, ask how your sales were credited.
Stated rate vs effective rate
The stated rate is what's written in your plan. The effective rate is what you actually received divided by what you sold. They differ when only part of a deal is commissionable, when tiers or floors apply, or when a deal is split with another rep.
Common questions
What is a typical commission rate?
Rates vary widely by industry and role, from low single digits on high-volume products to 10% or more of first-year contract value on new-business software deals. Compare your implied rate, not just the headline number.
Why is my effective rate lower than my plan's rate?
Common reasons are partial crediting (for example, only the upsell increase counts), split deals, discounts reducing commissionable value, sales below a payout floor, or clawbacks netted against the payment.
Is my rate on revenue or gross margin?
Your plan says which. A 20% rate on margin can pay less than a 7% rate on revenue, so convert both to dollars on the same deal before comparing.
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