Sales commission calculator: what will you earn on these sales?
Try it: commission on your sales
Enter quota and sales in the same unit, such as pounds of new business.
How the calculator works
Commission up to quota is sales times the base rate. Commission above quota is the extra sales times the higher rate. A cap stops the total at the figure you enter.
With the default numbers, £500,000 at 8% pays £40,000. The extra £100,000 at 12% pays £12,000. The total is £52,000.
Check these in the plan
- Whether commission is paid on bookings, invoices or cash.
- Whether the higher rate applies to all sales or only to the sales above quota.
- Whether a cap, a clawback or a split with another seller applies.
How commission is taxed in the UK
Commission is earnings from employment. Your employer pays it through PAYE like salary. It is taxed at the same rates as the rest of your pay.
The calculator adds your commission on top of your base salary. It then works out the extra tax and National Insurance that commission causes. What is left is the figure it shows as what you keep.
Why one big commission month looks heavily taxed
Most employers run PAYE on a cumulative basis. Each payslip adds your pay to date and compares it with the tax-free allowance to date. A large commission payment lifts pay to date in that month. Tax for the month rises with it.
Your tax for the full year is the same however the payments fall. PAYE corrects any gap in later months. Some tax codes work month by month instead. Then a big payment can be taxed more heavily until it is corrected.
See inside · £14 + VAT
The band from £100,000 to £125,140
The tax-free personal allowance falls by £1 for every £2 of income above £100,000. It is gone at £125,140. In that band the marginal rate is higher than the 40% headline rate. Commission that takes you through it keeps less than you expect.
A worked example
Base salary £55,000 and commission £52,000, in England. Total pay is £107,000. Income tax on the total is £31,632 and on the base alone is £9,432. National Insurance is £4,151 on the total and £3,111 on the base. The commission adds £22,200 of tax and £1,040 of National Insurance. You keep £28,760 of the £52,000.
The same figures in Scotland leave you with about £26,585, because the Scottish bands differ.
What the calculator leaves out
- Pension contributions. Salary sacrifice cuts pay before tax and National Insurance, so take-home looks different.
- Student loan repayments, benefits in kind and your tax code.
- Any other income.
This is an estimate for the 2026/27 tax year. It is general information, not tax advice.
Sources
- GOV.UK: Income Tax rates and bands, 2026 to 2027
- GOV.UK: Scottish Income Tax, 2026 to 2027
- GOV.UK: National Insurance rates and allowances, 2026 to 2027
- Income Tax (Earnings and Pensions) Act 2003, section 62 (a statute)
- HMRC PAYE Manual, PAYE11090: how tax codes are used
For pay as a share of a package, use the OTE calculator. To weigh a commission plan against another job, use the offer comparison calculator. For caps, accelerators and draws, read how to negotiate sales OTE.
Questions
How do you calculate sales commission?
Multiply sales by the commission rate. If the plan pays more above quota, apply that rate only to the extra sales.
What is a commission accelerator?
A higher rate on sales above quota. It rewards overperformance.
What is a commission cap?
A limit on how much commission you can earn in a period. Ask where it starts.
How is commission taxed in the UK?
Through PAYE, at the same rates as your salary. Commission counts as earnings from employment.
Why is my commission month taxed so heavily?
A large payment lifts your pay to date, so that month's tax rises. The year-end total is the same, and PAYE corrects any gap.
Also: commission accelerator comparison, commission clawback in the UK.
Related guides
Sales OTE calculator
Base, variable and attainment to expected pay and UK take-home.
Offer comparison calculator
Two or three offers side by side, with year-one pay for each.
How to negotiate sales OTE
Pay mix, quota realism, accelerators and a two-offer worked example.
Salary negotiation scripts
A phone script, replies for "best offer" and the levers beyond base.
Run your search like a pipeline
A Notion kit for sellers changing roles. It has a target list and a pipeline board with follow-ups due. It also has recruiter scripts, negotiation scripts and an offer calculator for year-one pay. £14, one payment, plus VAT for UK and EU buyers.
Principled Pitch is independent. Pay, quotas and hiring processes vary by company and country. Check the details of any role with the recruiter.