Free Sales Commission Calculator
Calculate your total compensation, commission earnings, and quota attainment instantly. Supports flat rate, tiered, and accelerator commission structures used by leading B2B SaaS companies.
3 Commission Structures
Flat rate, tiered, and accelerator models with customisable rates
Full OTE Breakdown
See monthly and annual base, commission, and total compensation
Quota Attainment Analysis
Track attainment percentage and effective commission rate
How it works
Frequently Asked Questions
Everything you need to know about sales commissions and compensation plans
How do sales commissions work?
Sales commissions are variable compensation paid to salespeople based on the revenue they generate. A rep earns a percentage of their closed deals on top of their base salary. The total of base salary plus expected commission at 100% quota attainment is called On-Target Earnings (OTE). Commission structures vary from simple flat rates to complex tiered and accelerator models that reward top performers.
What is the difference between flat rate and tiered commission?
Flat rate commission pays the same percentage on every dollar of sales regardless of performance. Tiered commission uses different rates at different sales thresholds -- for example, 5% on the first $250k, 10% on $250k-$500k, and 15% above $500k. Tiered structures incentivise higher performance by increasing the reward as reps sell more. Most mature B2B SaaS companies use tiered or accelerator models to drive overperformance.
What is an accelerator in a sales commission plan?
An accelerator is a commission structure where the rate increases once a rep exceeds their quota. For example, a rep might earn 10% on sales up to quota, 15% (1.5x) on sales between 100%-150% of quota, and 20% (2x) on anything above 150%. Accelerators are designed to motivate top performers to keep selling after they hit target, which is why they are the most common structure at high-growth companies.
What is OTE (On-Target Earnings) in sales?
OTE stands for On-Target Earnings -- the total annual compensation a salesperson can expect when they achieve 100% of their sales quota. OTE equals base salary plus expected commission at quota. For example, a rep with a $75,000 base and $75,000 in expected commission has an OTE of $150,000. In B2B SaaS, typical OTE splits are 50/50 or 60/40 (base/variable). Our GTM recruitment team can advise on competitive compensation packages.
What are commission clawbacks?
Commission clawbacks require salespeople to return commission if a customer churns, cancels, or fails to pay within a specified period (usually 30-90 days). Clawbacks protect companies from paying commission on deals that do not stick. They are common in SaaS and subscription businesses where customer retention is critical to revenue. Well-designed clawback policies balance risk without demotivating the sales team.
How do commission splits work in sales?
Commission splits divide the commission between multiple people who contributed to a deal. Common splits include SDR/AE splits (where the SDR who sourced the meeting gets 10-20% and the AE who closed gets the rest), overlay splits with sales engineers, and manager overrides where sales managers earn a small percentage of their team's deals.
What are typical B2B SaaS commission rates?
Typical B2B SaaS commission rates range from 8-15% of Annual Contract Value (ACV) for Account Executives. SDRs/BDRs usually earn $200-$500 per qualified meeting or 2-5% of pipeline generated. Enterprise reps with longer sales cycles may have lower rates (5-8%) but higher deal values. Rates vary by company stage, deal size, and whether it is new business or expansion revenue. Our SDR as a Service offering provides transparent pricing benchmarks.
What is a draw against commission?
A draw against commission is an advance payment made to salespeople, typically during ramp-up periods or slow seasons. A recoverable draw must be paid back from future commissions -- if a rep receives a $5,000 monthly draw but only earns $3,000 in commission, they owe $2,000. A non-recoverable draw does not need to be repaid and functions like a guaranteed minimum. Draws help new reps cover expenses while building their pipeline.
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