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How to calculate a salesperson's commission without Excel
A salesperson's commission is calculated by multiplying their sales by a rate. Once you add tiers, bonuses or different products, the calculation gets complicated and the spreadsheet becomes risky. Here are the most common formulas with examples, and what it takes to automate it all.
10 October 2026 · 5 min
1. The flat rate
Commission = sales × rate. Example: €20,000 of sales at a 5% rate gives €1,000 of commission.
2. Tiers
Each slice of sales has its own rate. Example: 3% up to €10,000, then 5% above. For €16,000 of sales: 10,000 × 3% = €300, plus 6,000 × 5% = €300, so €600 in total.
Variant: a single rate on everything, depending on the tier reached. State clearly which one you apply, because the result differs.
3. Target bonuses
A fixed sum paid if the target is reached. Example: €200 if sales exceed €15,000 in the month.
Why the spreadsheet eventually causes trouble
- A broken formula goes unnoticed
- Sales are re-entered in several places
- Each salesperson asks “how much do I have?” mid-month
- File versions multiply
- Impossible to give each person access to only their numbers
Automating
A custom tool receives sales once, applies your rules and shows each person their numbers in real time.
Frequently asked questions
How do you calculate tiered commission?
Multiply each slice of sales by its rate, then add the results.
What is the difference between commission and a bonus?
Commission is proportional to sales; a bonus is a fixed sum tied to a target.
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