Tiered Commission Calculator
Free tiered commission calculator — model multi-bracket plans where the rate rises at 50%, 100% and 150% of quota, and see exactly what each bracket pays.
About this tool
Tiered plans pay different rates on different slices of revenue, which makes them genuinely hard to check by hand. This calculator applies each bracket to the correct slice of your attainment and shows the earnings from every tier separately.
Frequently Asked Questions
- How does a tiered commission plan work?
- Each rate applies only to the revenue inside its bracket. Crossing into a higher tier does not re-rate the revenue you already earned below it — that would be a cliff plan, which is rare and generally discouraged.
- What is the difference between tiered and accelerated commission?
- An accelerated plan usually has two rates split at 100% of quota. A tiered plan has three or more brackets, often including a reduced rate below 50% attainment.
- Should tiered plans have a cap?
- Most compensation research argues against caps. Capping the top bracket removes the incentive precisely when a rep is at their most productive, and it is a leading reason top performers leave.
- How do I check my tiered commission is correct?
- Calculate each bracket separately and add them up. If your employer's figure differs, the usual causes are a different revenue basis (bookings vs recognised revenue) or a clawback from an earlier period.