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    SaaS Commission Calculator

    TL;DR

    Free SaaS commission calculator — model commission on new ARR with accelerators, deal splits, and quota attainment for AEs and account managers.

    SaaS Commission Calculator

    Most SaaS plans pay on new/net-new ARR rather than total contract value.

    Set below 100% when the deal is split with another rep or an overlay.

    Total commission
    $30,000
    Quota attainment
    50.0%
    Commissionable amount
    $300,000
    Earned commission
    $30,000
    Effective rate on revenue
    10.00%
    Breakdown
    • Up to quota @ 10%$30,000

    Everything is calculated in your browser. No inputs are sent to a server or stored.

    About this tool

    SaaS plans pay on new ARR rather than total contract value, which trips up most generic commission calculators. This one takes new ARR as the basis and supports accelerators above quota plus split deals with overlays.

    The formula

    Commission = new ARR × rate, with the portion above quota paid at the accelerated rate. Multi-year deals normally commission the annual value, not the total contract value.

    Worked example

    An AE with a $600,000 ARR quota closes $300,000 on a 10% rate. Because they are below quota, the accelerator never triggers and commission is $30,000. Closing $700,000 would pay $60,000 base plus $15,000 accelerated at 15%.

    Benchmarks

    SaaS commission benchmarks
    MetricTypical rangeNotes
    AE commission rate8–12% of new ARRRoughly 10% is the sector default
    Quota to OTE ratio4–6×Below 4× the plan is usually unprofitable
    Accelerator threshold100% of quotaSome plans start at 80%
    Accelerator rate1.5–2× the base rateUncapped at well-run companies
    Multi-year uplift0.5–2 extra pointsPaid on the annual value, not TCV

    How it works

    1. Enter new ARR closed. The annual recurring revenue you added in the period.
    2. Enter your ARR quota. Your target for the same period.
    3. Set base and accelerated rates. Typically 10% base and 15% above quota.
    4. Adjust your share. Reduce the split when a deal is shared with an overlay or partner.
    How we built this

    Built and maintained by the LemCoach team. All calculations run client-side — your inputs never leave your browser. Formulas are reviewed against industry benchmarks we collect from anonymised LemCoach session data each quarter.

    Frequently Asked Questions

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