How to Calculate Sales Commission
Sales commission is variable compensation paid to salespeople based on revenue generated. Common structures include flat rate (fixed %), tiered (progressive rates), and accelerators (bonus rates above quota). Most B2B SaaS companies use 10% commission on first-year ACV as a baseline.
Basic Formula
Revenue × Rate
Typical Rate
8-12% ACV
OTE Split
50/50 Base/Var
Sales Commission Calculator
Calculate earnings with flat, tiered, or accelerator commission plans
Compensation Plan
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$
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Rate Settings
%
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Total Annual Earnings
$192,500
On Target118% of quota
Earnings Breakdown
Base Salary$85,000
Commission$107,500
Total Earnings$192,500
Base (44%)Commission (56%)
Performance Metrics
Quota Attainment
118%
Effective Rate
10.8%
vs. Expected OTE
AE (Mid-Market) OTE
$170,000
Difference
+$22,500
0OTE150%
Frequently Asked Questions
How do you calculate sales commission?
Basic commission = Sales Revenue × Commission Rate. For quota-based plans: Commission = (Quota Attainment × OTE Variable) or with tiers/accelerators for overperformance. Most B2B sales use 10% commission rate as baseline.
What is OTE (On-Target Earnings)?
OTE = Base Salary + Variable Commission at 100% quota attainment. A typical split is 50/50 (base/variable) for AEs and 70/30 for SDRs. Enterprise roles may have 60/40 splits.
What are commission accelerators?
Accelerators increase commission rates above quota (e.g., 10% up to quota, 15% above). They incentivize overperformance. Best practice: 1.5-2× multiplier for 100-150% attainment.
What is a typical sales commission rate?
B2B SaaS averages 8-12% of ACV. SDRs: $50-100 per qualified meeting. AEs: 10% first-year ACV. Enterprise deals may have lower rates (5-8%) due to larger deal sizes.
How often should commission be paid?
Most companies pay monthly or semi-monthly. Some pay on booking, others on cash collection. Best practice: Pay within 30 days of deal close. Clawback periods typically 90 days.
Optifai Research Team
VerifiedSales Compensation & RevOps | 500+ comp plans analyzed | Industry benchmarks
Last updated: November 26, 2025
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