Sales Commission Calculator

How the calculation works

Commission is paid in slabs. The sales up to target earn the base rate. Only the part above target earns the accelerator rate. This avoids the cliff where one extra rupee of sales suddenly re-prices everything before it.

Designing a plan that works

• Set the accelerator high enough to matter, but low enough that a few large deals cannot distort the budget.
• Use a cap only if finance needs a ceiling, and tell reps in advance.
• Pay on closed and collected sales if bad debt is a risk.
• Write the plan down before the period starts, and do not change it mid-period.