Variable sales commission calculator
Set your commission tiers by quota attainment rate and the calculator applies the right rate to each rep and totals the commissions. Excel export with IF formulas.
Rewarding sales performance requires a clear, repeatable commission calculation. This generator applies rate tiers based on the percentage of quota attainment and totals the variable pay for your whole team.
How commissions are calculated
Each rep's attainment rate equals revenue achieved divided by their quota. Based on this percentage, the matching tier sets the commission rate applied.
The commission equals the revenue achieved multiplied by the rate of the tier reached. You can set an accelerator above 100% to reward exceeding the quota.
The Excel export reproduces this logic with nested IF formulas: you can adjust the tiers and the calculation stays automatic in the file.
Use cases
- B2B sales teams with quarterly quotas
- Distribution networks and franchises
- Calculating quota-based bonuses (tiers, accelerators)
- Simulating variable compensation plans
Frequently asked questions
How does a tiered commission work?
Each tier sets a quota attainment threshold (e.g. 70%, 90%, 100%, 120%) tied to a rate. The rep earns the rate of the highest tier they reach.
What is a commission accelerator?
It's an increased rate applied above 100% attainment, to reward overachievement more strongly and drive outstanding performance.
Does the Excel file include the formulas?
Yes. The rate is calculated by a nested IF formula and the commission by a multiplication. You can change the tiers and everything recalculates.