Sales Commission Target Calculator
Find the commission earned on a sales figure and the sales needed to reach a commission target you set.
Recent
Formula
How the calculation works
The calculator multiplies the sales figure by the commission rate and divides by one hundred to give the commission earned.
For the target it divides the desired commission by the same rate expressed as a decimal, that is the rate divided by one hundred.
The result is the sales value needed to earn exactly the target commission at that rate.
Common mistakes
- Leaving the rate in percentage form when finding the target sales, which makes the answer one hundred times too large.
- Ignoring the sales threshold or slab rules, since many schemes pay a lower rate until a monthly target is crossed.
When to use it
- Salespeople use it to see how much more they must sell this month to hit the commission they want.
- Managers use it to check whether a commission rate makes a target realistic for the team within the month.
Worked example
With sales of 500000 taka at a 3 percent commission the earnings are 15000 taka, and to reach a target commission of 30000 taka you need 1000000 taka of sales.
Common questions
How is the target sales figure worked out?
It is simply the target commission divided by the rate as a decimal, so 30000 taka at 3 percent needs one million taka of sales.
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