Sales commission calculator with tiers, quotas and splits

Multiply the sales that count by the commission rate.

Commission = sales counted × rate

Sales counted are the rep’s sales for the period, minus returns and credits, minus anything your plan leaves out, like freight.

Example: a rep sells 18,400 in a month, 400 of it shipping. At 6%: (18,400 - 400) × 6% = 1,080.

Type one row per sale or one row per rep with their total. Rows with the same rep are added together.

Each tier pays its own rate on a band of sales. Plans pay it one of two ways.

• Each slice: sales inside each band earn that band’s rate. Commission = sum of (band sales × band rate).
• Whole total: the full total earns the rate of the highest tier it reaches. Commission = total × that tier’s rate.

Example: tiers are 3% up to 25,000, 5% up to 50,000 and 7% above. A rep sells 40,000.

• Each slice: 25,000 × 3% + 15,000 × 5% = 750 + 750 = 1,500.
• Whole total: 40,000 × 5% = 2,000.

The tool shows the slices for every rep, so the rep can check the math.

Set the tier limits as a percent of each rep’s quota, then pay each slice at its rate.

Limit in dollars = quota × tier percent

Example: quota 40,000. The plan pays 5% up to 100% of quota and 8% above. The rep sells 50,000, which is 125% of quota.

40,000 × 5% + 10,000 × 8% = 2,000 + 800 = 2,800.

Give each rep their own quota in the boxes that appear. The result shows each rep’s percent of quota.

Group a sales report by rep and export it. Intuit’s help says QuickBooks Online has no commission calculation of its own.

1. Put the rep on each sale. Use a Sales Rep custom field (Settings > Custom fields, Transaction category, a dropdown list of reps), or a class or location per rep.
2. Run the report: Sales by Customer Detail, then Customize > Groups > your Sales Rep field. Class users run Sales by Class Detail.
3. Export: Export/Print > Export to Excel, then save as CSV.
4. Drop the file in the second tab above. It reads the rep headings and skips the total rows.

Class tracking needs Plus or Advanced.

• Sales with no rep. They show as their own row and earn nothing until a rep is added.
• Paid or invoiced. Decide if commission is earned when the invoice goes out or when the customer pays.
• The date range. Match it to the pay period in your plan.
• Items that earn nothing. List freight, deposits and fees in the leave-out box.
• Overtime. For nonexempt staff, 29 CFR 778.117 counts commissions in the regular rate.
• The written plan. State rules on commission agreements vary.

On a cash basis, slow payers hold back a rep’s pay. Our field guide on chasing overdue invoices in QuickBooks Online covers the follow-up, and the AR aging chase list sorts who to call first. For a commission report built once and run every month, see reports and answers.