Commission Calculator

Enter rates as percents (8 for 8%). Numbers stay in your browser. The default is 50,000 of sales at a flat 8%, which is a 4,000 commission. This is not tax or employment advice.

Quick answer: with sales in B2 and the rate in C2 as 8% or 0.08:

=B2*C2

Two tiers, 5% on the first 10,000 and 8% after that:

=MIN(B2,10000)*0.05+MAX(0,B2-10000)*0.08

8% flat, and a two-tier 15,000

50,000 × 0.08 = 4000. In Google Sheets on 12 November 2026, =50000*0.08 returned 4000. Enter 8% or 0.08 in the rate cell, not the whole number 8, unless you also divide by 100.

On 15,000 of sales with 5% on the first 10,000 and 8% on the remaining 5,000: 10,000 × 0.05 + 5,000 × 0.08 = 500 + 400 = 900. =10000*0.05+5000*0.08 returned 900. That is not 8% of 15,000 (which would be 1,200), and it is not 5% of 15,000 (750).

What this leaves out

Plans with three or more tiers, a quota that must be hit before any commission, a bonus on top of the rate, or commission on profit instead of sales need extra terms in the sheet. A [pivot calculated field](/excel/pivot-table-calculated-field/) of the form =Revenue*10% is the flat-rate case applied to a pivot, and it should match 10% of the same totals (2,445 on a 24,450 grand total in the sample used on that page).

Questions that come up

What is the commission formula in Excel or Google Sheets?

For a flat rate, =B2*C2 with sales in B2 and the rate as 8% or 0.08 in C2. 50,000 at 8% is 4,000. For two tiers, split the sales: =MIN(B2,10000)*0.05+MAX(0,B2-10000)*0.08. On 15,000 of sales that is 900.

Is commission the same as a margin or a discount?

No. Commission is a cut of sales (or of profit, if that is how your plan is written). Margin is profit against the selling price, and a discount comes off a list price. Use the markup vs margin or discount calculators for those.

Does this include tax or draws against commission?

No. It is the gross commission on the sales you enter. Tax, a recoverable draw, or a cap are outside this formula.