Advanced Sales Commission Calculator 2025

A tiered commission structure offers different commission rates for different levels of sales. For example, you might earn 5% on your first $25,000 in sales, 8% on sales from $25,001 to $75,000, and 12% on all sales above $75,000. This system incentivizes higher performance by rewarding salespeople with a greater percentage for reaching higher sales targets.

A draw is an advance payment made to a salesperson against their future expected commissions. It provides a stable income during slow periods. The draw amount is typically deducted from the commissions earned in a later period. For example, if you receive a $1,000 draw and then earn $3,000 in commission, your commission payout would be $2,000 after repaying the draw.

A commission split is used when multiple people collaborate on a sale. The total commission earned from the sale is divided among the team members according to a pre-agreed percentage. If a sale generates $10,000 in commission and you have a 50% split, you will personally earn $5,000.