Sales commission calculator: flat, tiered, slab and profit commission
This commission calculator works out the commission on sales under the four plans businesses actually use: a flat rate on every sale, tiered rates where each band of sales earns its own percentage, a slab where the rate you reach applies to the whole amount, and commission on profit. Add base pay and a sales target to see total earnings and how close you are to quota.
For India it also works out TDS on commission paid to an agent or broker — 2% once the year’s commission to that person passes ₹20,000, or at least 20% without a PAN — and the amount payable after TDS. A what-if table shows the commission at 50% to 150% of the sales or target, and the whole calculation downloads as a CSV that opens in Excel, which is handy if you were looking for a commission calculator in Excel.
How to use the Sales Commission Calculator
- Choose Flat rate, Tiered, Slab or On profit, and the currency.
- Enter the sales for the period (and the cost of goods sold for profit commission).
- Enter the rate, or the tiers as “sales from, rate %” lines; optionally add base pay and a target.
- In India, tick TDS if the commission goes to an agent, and enter what was already paid to them this tax year.
- Read the commission, effective rate, TDS and net payable; copy the summary or download the CSV.
Sales Commission Calculator features
Four plan types
Flat, tiered (graduated or accelerator), slab (retroactive) and profit-based commission.
Tier paste
Type or paste tiers from a spreadsheet; Indian and international digit grouping both work.
What-if table
Commission and effective rate at 50%, 75%, 100%, 125% and 150% of sales or target.
India TDS
The ₹20,000 yearly limit including earlier payments, 2% rate, 20% without PAN, net payable.
CSV export
Band-by-band commission and the what-if table in one file, with spreadsheet-formula protection.
Commission formulas with an example
Take ₹3,00,000 of sales and tiers of 2% up to ₹1,00,000, 3% up to ₹2,50,000 and 5% above. Tiered: 1,00,000 × 2% + 1,50,000 × 3% + 50,000 × 5% = 2,000 + 4,500 + 2,500 = ₹9,000, an effective 3%. Slab with the same table: the whole ₹3,00,000 is in the 5% slab, so ₹15,000. Flat 4%: ₹12,000. On profit at 10% with ₹2,00,000 cost of goods: (3,00,000 − 2,00,000) × 10% = ₹10,000.
Tiered plans reward every extra sale smoothly. Slab plans create cliffs: ₹2,49,999 of sales pays 3% of the whole (₹7,500) but ₹2,50,000 pays 5% (₹12,500), which encourages pushing sales across a threshold at month end. Check the what-if table before agreeing to one.
TDS on commission in India
From 1 April 2026 commission and brokerage paid to a resident are covered by section 393(1), Table Sl. No. 1(ii) of the Income-tax Act 2025 — the old section 194H. A “specified person” paying commission deducts 2% once the total for the tax year exceeds ₹20,000; when a payment takes the total over the limit, tax is worked out on the whole year’s commission, including earlier payments made without TDS. Without a PAN the rate is at least 20%. Commission paid to an employee is salary and is taxed through salary TDS instead. For other payments, use the TDS calculator.
For margins behind a commission plan, see the profit margin calculator; for property agents, the real estate commission calculator.
Sales Commission Calculator FAQ
How do you calculate commission on sales?
Multiply the sales by the commission rate: ₹2,00,000 at 5% is ₹10,000. With tiers, apply each rate only to the sales inside its band and add the results.
What is the difference between tiered and slab commission?
Tiered pays each band at its own rate; slab pays the highest rate reached on the whole amount. Slab pays more just above a threshold and less just below it.
How is TDS on commission calculated in India?
At 2% of the commission once the year’s total to the payee exceeds ₹20,000 (s.393(1) of the 2025 Act, old 194H), or at least 20% without a PAN.
Is there a commission calculator in Excel?
This commission calculator downloads a CSV with every band and the what-if table, which opens in Excel or Google Sheets.
Can commission be calculated on profit instead of sales?
Yes. Choose On profit, enter the cost of goods sold, and the rate applies to sales minus cost.
Is this tax advice?
No. It applies the rates and limits shown; your plan document and a tax adviser decide your case.