Sales Commission Calculator

A tiered commission structure pays different rates depending on the size of the deal. For example: 5% on the first S$10,000, 7% on S$10,001–S$50,000, and 10% above S$50,000. This incentivises reps to close larger deals — the commission rate accelerates as deal size grows. The commission applies to the amount within each tier, not the entire deal at the highest rate.

Commission rates vary widely by industry and deal size. SaaS companies typically pay 8–12% of annual contract value. E-commerce/retail: 3–8%. Financial services: 5–15%. Real estate: 1–3% of transaction value. Enterprise software: often 10–15% with accelerators above quota. Base + commission structures typically set OTE (On-Target Earnings) at a 50/50 to 70/30 base/commission split.

Flat commission pays the same rate on the entire deal regardless of size — simple but doesn't incentivise larger deals. Tiered commission applies different rates to different portions of the deal value — more complex but creates strong incentives for reps to push for larger deals. Tiered structures are standard in B2B SaaS and enterprise sales.

Accelerators are bonus commission rates that kick in once a rep hits their quota. For example, a rep earns 10% up to quota and 15% on everything above it. This is a powerful motivator for high performers. This calculator handles the base tier structure; accelerator logic can be added as an additional bonus tier once quota is defined.

If multiple reps worked a deal (e.g. a BDR sourced the lead and an AE closed it), you can split the total commission. Common splits: 20/80 (BDR/AE) for inbound, 30/70 for SDR/AE sourced deals. Use the 'Number of reps' and split % fields in this calculator to model the payout per rep.

Base + commission (OTE) is standard for B2B SaaS and enterprise sales — it provides income stability while maintaining incentives. Commission-only is common in real estate, insurance, and some SMB sales roles where reps have existing pipelines and experience. OTE structures make recruiting easier and reduce the risk of reps taking shortcuts to close deals quickly at the expense of long-term fit.