Free tool
Commission calculator
Work out a sales commission three ways: a percentage of sales, a margin on every unit, or tiers by monthly volume. The total changes as you type.
Everything is worked out in your browser. Nothing you type is sent anywhere or saved.
Commission
MX$1,480
- Working
- MX$18,500 × 8%
Marginal tiers and whole-volume tiers
A tiered commission can be read two ways, and the gap between them is often hundreds of pesos a month.
Marginal tiers work like tax brackets: each rate pays only for the units inside its band. Sell 260 units with tiers starting at 0, 100 and 300, and the first 100 earn the first rate, the next 160 earn the second, and the third has not started yet. Crossing a threshold never changes what earlier units earned.
Whole-volume tiers, sometimes called retroactive, pay every unit at the rate of the band the month ends in. That makes a cliff: the 101st sale re-prices the 100 before it, so a single unit can be worth more than the rest of the week. The cliff is what people end up arguing about, which is why this calculator, and Artisanly, use marginal tiers.
Which way should you pay?
A percentage of sales suits someone paid on revenue. A margin per unit suits a seller who buys from you at a partner price and sells to shops at their own: the difference is the commission, and it moves with what actually sold. Tiers reward volume without rewriting what was already earned.
What people ask
- How do you calculate a sales commission?
- Multiply what sold by the rate. For a percentage, sales × rate ÷ 100: MX$18,500 at 8% is MX$1,480. For a margin per unit, (price to the shop − partner price) × units sold: a MX$9 margin on 220 units is MX$1,980.
- What is a tiered commission structure?
- A rate that changes with volume. For example, MX$3 a unit for the first 100 units in a month, MX$4 from there to 300, and MX$5 after that. It rewards selling more without changing the deal for a quiet month.
- Are marginal tiers or whole-volume tiers better?
- Marginal tiers are easier to explain and harder to game. Nobody holds an order back or rushes one in to clear a threshold, and nobody's pay jumps or drops by hundreds because of one unit. Whole-volume tiers pay more near the top of each band, and less predictably.
- On consignment, is commission paid on what was delivered or on what sold?
- On what sold. Stock sitting on a shop's shelf has not earned anything yet, and free replacements for damaged or expired stock never earn commission, because the shop is not charged for them.
- Is anything I type saved?
- No. The calculator runs entirely in your browser. Nothing is sent to us and nothing is stored.
Artisanly works this out every month
In Artisanly a Seller's commission is a margin per unit, priced by monthly volume tiers, with a separate tier schedule depending on whether the Seller or you made the delivery. Each Seller sees their own earnings page, and payouts are recorded against it.
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