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Sales Commission
Calculator

Enter your deal size, commission rate, and deals closed per month. See your real monthly and annual earnings update live.

YOUR NUMBERS

$
%
$/yr

PROJECTED ANNUAL EARNINGS

$48,000

$4,000 / month

Commission per deal

10% of $5,000

$500

Monthly commission

8 deals / month

$4,000

Monthly total

commission only

$4,000

THE CLOSE-RATE LEVER

Close 2 more deals/mo$60,000/yr

Close 4 more deals/mo$72,000/yr

Same leads. Same dials. A higher close rate is a raise you give yourself.

How sales commission structures actually work

The most common structure is base salary plus commission. You get a fixed paycheck that covers your basics, plus a percentage of every deal you close on top. A lower base usually comes with a higher commission rate, and a higher base comes with a lower rate. The number that actually matters is your on-target earnings — base plus expected commission at a realistic volume — not the headline percentage. Two offers with wildly different rates can pay the same at the end of the year.

Tiered commission rewards volume. You earn one rate up to a quota, then a higher rate on everything above it. A plan might pay 8% until you hit $50k in monthly revenue, then 12% on every dollar past that, and 15% once you clear $100k. Tiered plans are designed to pull your best months higher, so the reps who consistently break into the top tier earn dramatically more than the percentage on the low tier would suggest. This calculator uses a single blended rate — if you are on a tiered plan, model your realistic average rate across the tiers you actually hit.

A draw against commission is an advance. The company pays you a set amount each period as a floor, then recovers it from the commission you earn. A recoverable draw must be paid back out of future commissions, so a slow month becomes a debt you carry into the next one. A non-recoverable draw is effectively a guaranteed minimum you keep no matter what. Draws are common in ramp periods and in industries with long sales cycles like real estate and insurance, where deals close months apart and reps need steady income in between.

The fastest way to earn more isn't more dials — it's a higher close rate.

Grade your calls free and see exactly where you're losing deals — the specific moments, quotes, and word-for-word fixes that turn near-misses into signed deals.

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Frequently Asked Questions

Sales commission is calculated by multiplying the value of what you sold by your commission rate. The basic formula is: commission = deal size × (commission rate ÷ 100). For example, a $5,000 deal at a 10% commission rate pays $500 per deal. Multiply that by the number of deals you close in a month to get your monthly commission, then add any base salary to see your true take-home.

Commission rates vary widely by industry and deal type. High-ticket and SaaS closers often earn 10-20% of the deal, while roles with a large base salary may pay 2-8%. Real estate typically runs 2.5-3% per side, insurance can pay 40-100% of first-year premium, and setters usually earn a smaller percentage plus bonuses. The "right" rate depends on your total on-target earnings, not the percentage alone.

Base salary is fixed pay you receive regardless of performance. Commission is variable pay tied directly to what you sell. Many sales roles combine the two — a lower guaranteed base plus commission on every deal. A pure commission role has no base but usually pays a higher percentage, meaning more upside and more risk.

Take your commission per deal, multiply by the number of deals you close per month, then multiply by twelve. If you have a base salary, add it on top. This calculator does the math live as you type, showing commission per deal, monthly commission, monthly total with base, and your projected annual earnings.

The fastest lever is your close rate. If you close more of the same conversations you are already having, your commission rises without spending a dollar more on leads or making more dials. Improving from a 20% to a 30% close rate is a 50% raise on the same pipeline. Grading your calls to fix the specific moments where deals slip is the highest-leverage way to lift that number.

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