What's the difference between flat and tiered commission?

Flat commission applies one rate to the entire sale. Tiered commission applies increasing rates only to the portion of sales within each threshold, rewarding higher sales volumes with better rates on the marginal amount.

Commission Calculator

Calculate sales commission from a flat rate, or from tiered rates that increase at higher sales thresholds.

Structure

Sale amount

Commission rate

Commission

$750.00

How It Works

Flat-rate commission

Commission = sale amount × commission rate — a single percentage applied to the whole sale.

Tiered commission

Each tier's rate applies only to the portion of the sale within that tier's range — similar to how progressive tax brackets work, higher rates only apply to the amount above each threshold.

Example Calculation

On a $15,000 sale with 5% commission up to $10,000 and 8% above that: 5% of $10,000 ($500) plus 8% of the remaining $5,000 ($400) totals $900.

Common Mistakes

Applying the highest tier's rate to the entire sale instead of just the portion within that tier.
Forgetting that commission structures vary widely by company and role — always confirm your actual plan's specific rates and thresholds.

Frequently Asked Questions

What's the difference between flat and tiered commission?: Flat commission applies one rate to the entire sale. Tiered commission applies increasing rates only to the portion of sales within each threshold, rewarding higher sales volumes with better rates on the marginal amount.