Free Tool
Tiered Commission Calculator
Some programs pay more per sale once you pass a volume threshold. This calculator applies each tier only to the sales inside it — and shows the blended rate you actually keep.
Planning estimate, not financial advice. All figures on this page are estimates or scenarios for planning purposes only, built from the numbers you enter. They are not financial, tax or legal advice, and no earnings are promised. Read the full financial disclaimer.
What this tool does
Enter your sales volume and order value, then up to three tiers: each tier is a sales threshold and the rate that applies above it. The calculator splits the sales across the tiers, applies each rate only to the sales inside that tier, and returns the total commission and the blended rate across all sales.
The mistake this tool stops is applying the top rate to everything. A program that pays 10% up to 100 sales and 15% above it pays 15% only on the sales past 100 — the first hundred still pay 10%. The blended rate is the honest number, and it is always between the lowest and highest tier.
Try it
Waiting. Enter your sales volume, order value and tiers, then press Calculate.
How it works
The sales are split across the tiers in order. The first tier covers sales up to its threshold, the second covers sales between the first and second thresholds, and the final tier — with no cap — catches everything left. Each tier’s commission is its sales multiplied by the order value multiplied by its rate, and the total is the sum.
The blended rate is total commission divided by total sales value, times one hundred. It is the single number to compare against a flat-rate program: if a flat 12% program beats your blended rate, the tiers are not paying you more.
Assumptions and limitations
Tiered rates are set by the program’s terms, which are the only source that matters here.
- Tier thresholds count sales in the period the program defines — usually a month. Confirm the period before comparing programs.
- Rates are entered by you. Programs change tier structures; check the program’s own terms for the current thresholds.
- The last tier must have no cap (enter 0) so it catches every sale above the previous threshold.
- Reversals and refunds are not modelled. Apply this tool to net sales, not gross clicks.
Worked example
Example (illustrative inputs, not a real program). 250 sales at 60 order value; tiers 10% to 100 sales, 15% to 200, 20% above:
| Item | Figure |
|---|---|
| Tier 1 — 100 sales at 10% | 600.00 commission |
| Tier 2 — 100 sales at 15% | 900.00 commission |
| Tier 3 — 50 sales at 20% | 600.00 commission |
| Total commission on 15,000 of sales | 2,100.00 |
| Blended rate | 14.00% |
Frequently asked questions
Does the top tier rate apply to all my sales?
No — only to the sales above that tier’s threshold. A program paying 20% above 200 sales still pays the lower rates on the first 200. Applying the top rate to everything is the most common tiered-commission mistake.
What is a blended rate?
Total commission divided by total sales value. It is the single rate your tiered structure actually averages out to, and the number to compare against a flat-rate program.
What if my program has more than three tiers?
Model the first three — the ones that hold most of your sales — or merge neighbouring tiers by entering their average rate. The maths is identical at any tier count; three covers the structures programs actually publish.
Why does the calculator ask for a threshold of 0 on the last tier?
Zero means no cap: the last tier catches every sale above the previous threshold. Without an uncapped final tier, sales above the highest threshold would have no rate at all.