Work out a salesperson's commission three ways. Simple takes any two of the sales price, the rate, and the dollar commission. Flat adds an optional base (a dollar amount or a percent of sales) to a single extra commission. Tiered pays a different rate on each slice of sales — leave a tier's upper limit blank if it has no cap.
Formula
A simple commission is a percentage of the sale. Given any two, the third follows:
commission = sales price × rate
rate = commission ÷ sales price
sales price = commission ÷ rate
A base is added on top — either a flat dollar amount or a percent of sales. Tiered (marginal) structures apply each rate only to the amount in that band:
(t1 × c1) + ((t2 − t1) × c2) + … + ((sales − t(n−1)) × cn)
Crossing a tier does not re-rate the whole sale. A $27,000 total in a 3% / 5% / 10% plan pays $1,050, not $2,700.
Default examples
| Structure | Inputs | Commission |
|---|---|---|
| Simple | $200,000 at 3% | $6,000 |
| Flat | $200,000 at 3% | $6,000 |
| Flat + $1,000 base | $200,000 at 3% | $7,000 |
| Tiered | 3% to $20,000, then 5% | $9,600 |
| Tiered + $1,000 base | same bands | $10,600 |
| Three bands | $27,000 at 3% / 5% / 10% | $1,050 |
Examples
$200,000 house at 3%
A simple 3% commission on a $200,000 sale is $6,000. The same identity run backwards: $6,000 ÷ $200,000 = 3%, and $6,000 ÷ 3% = $200,000.
Tiered 3% then 5% on $200,000
The first $20,000 pays 3% = $600. The remaining $180,000 pays 5% = $9,000. Total commission is $9,600. A $1,000 base would bring that to $10,600.
$27,000 with three increasing bands
$20,000 × 3% = $600, the next $5,000 at 5% = $250, and the last $2,000 at 10% = $200. Total $1,050.