SaaS Commission Calculator
Free SaaS commission calculator — model commission on new ARR with accelerators, deal splits, and quota attainment for AEs and account managers.
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.
Frequently Asked Questions
- What is a typical SaaS sales commission rate?
- 8–12% of new ARR for an Account Executive is the common band, with roughly 10% as the default. Enterprise AEs sit lower per deal but carry much larger deal sizes.
- Is SaaS commission paid on ARR or TCV?
- Almost always on annual recurring revenue. A three-year $300,000 contract normally commissions the $100,000 annual value, sometimes with a small uplift for the multi-year term.
- How is renewal or expansion commission paid?
- Renewals typically pay 1–3%, expansion and upsell 6–10%. The gap reflects the effort difference between defending revenue and creating it.
- What quota-to-OTE ratio is healthy?
- 4–6× on-target earnings. Below 4× the plan struggles to be profitable; above 6× attainment usually falls below the level that keeps reps from leaving.