Commission Structure Comparator
Compare a flat commission plan against a tiered commission structure. See which pays more at different sales levels and find the break-even point.
Financial Disclaimer
This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.
Better Plan
Plan 1 (Flat)
Inputs
Comparison
Plan 1 Annual Total
$86,000.00
Plan 2 Annual Total
$77,200.00
Annual Difference
$8,800.00
Break-Even Monthly Sales
$43,700.00
Plan 1 Effective Rate
10%
Plan 2 Effective Rate
10.33%
Monthly Earnings vs Sales Volume
How to Use This Calculator
- Enter Plan 1's base salary and flat commission rate, then Plan 2's base salary and tiered rates.
- Set the tier threshold for Plan 2 — the sales volume at which the higher commission rate kicks in.
- Input your expected monthly sales amount to calculate actual earnings under each plan.
- Review Plan 1 Total vs Plan 2 Total to see which structure pays more at your sales level.
- Check the Break-Even Sales output to find the sales volume where both plans pay equally.
What each input means
- Plan 1 Base Salary
- Annual base salary for the flat commission plan.
- Plan 1 Commission Rate
- Flat commission rate on all sales.
- Plan 2 Base Salary
- Annual base salary for the tiered commission plan.
- Plan 2 Base Commission Rate
- Commission rate on sales up to the threshold.
- Plan 2 Tier Threshold
- Monthly sales level where the higher tier kicks in.
- Plan 2 Rate Above Threshold
- Commission rate on sales above the threshold.
- Expected Monthly Sales
- Your expected average monthly sales volume.
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersPlan 1 Base Salary = 50000, Plan 1 Commission Rate = 10, Plan 2 Base Salary = 40000, Plan 2 Base Commission Rate = 8 = 7 input(s) provided
- Calculate Better PlanBetter PlanPlan 1 (Flat) = Plan 1 (Flat)
- Calculate Plan 1 Annual TotalPlan 1 Annual Total86000 = $86,000
- Calculate Plan 2 Annual TotalPlan 2 Annual Total77200 = $77,200
Engine last updated . Checked against 2 independently-derived tests — how we verify calculators.
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