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Sales commission calculator

Commission on sales, total pay and a minimum wage check, with every step shown.

Sales commission calculator

The figure the commission is worked out on, usually net of VAT. Your plan says which one counts: sales invoiced, cash received or margin.

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How is commission worked out?

Banded: only the sales above a threshold earn the higher rate. Retroactive: once sales reach a threshold, its rate applies to all sales.

With bands or tiers: the rate below the first threshold (0 if nothing is paid below it).

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Gross basic pay for the same period, before tax and National Insurance, to see total pay.

£

Commission (gross)

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Enter the sales and the rate to see the commission.

Sales in the period
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Commission (gross)
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Recent calculations

Nothing yet: copy, export or save a calculation to find it here.

How it works

Enter your sales for the pay period and the commission plan in your contract: one rate, or up to three rates split by two thresholds. You get the commission before tax, total pay with your basic pay and, if you want, a check against the minimum wage in force across the UK (£12.71 an hour for workers aged 21 and over since 1 April 2026) for the hours you work.

Choose how commission is worked out

Flat rate: one rate on all sales. Banded: each slice of sales earns the rate of its band, as with tax bands, so only the sales above a threshold earn the higher rate. Retroactive: once sales reach a threshold, that tier’s rate applies to all your sales from the first pound. A threshold is reached when sales are equal to it or above it.

Enter the rates and thresholds

The first rate applies below the first threshold; enter 0 if nothing is paid until you hit a target. The second threshold is optional: leave it empty for a two-rate plan. Enter the figure your plan pays on, whether that is sales invoiced, cash received or margin, with or without VAT.

Check against the minimum wage

Tick ‘Check against the minimum wage’, choose a monthly or weekly pay period and enter your hours a week. For a month, the calculator counts weekly hours × 52 ÷ 12. The hourly rates are £12.71 at 21 and over, £10.85 at 18 to 20, and £8.00 under 18 or for apprentices, the same in England, Scotland, Wales and Northern Ireland. The minimum wage covers workers, not the genuinely self-employed. If your contract guarantees more, choose ‘Other hourly minimum’.

Rounding and reuse

Amounts are rounded to the nearest penny, with halves rounded up; with bands, each band is rounded and the bands are then added. Copy the workings in one click, export them as a CSV file or save the result to Priostack.

Flat rate: commission = sales × rate.

Banded: commission = the sum, band by band, of (sales within the band × the band’s rate).

Retroactive: commission = sales × the rate of the highest tier reached.

Minimum for a month = hourly rate × hours a week × 52 ÷ 12; top-up due = minimum − (basic pay + commission), when positive.

Example: £45,000 of sales under a three-rate plan

A salesperson on £1,200 a month basic pay earns 2% up to £20,000 of sales, 4% from £20,000 to £40,000 and 6% above that. With £45,000 of sales in the month, the banded plan pays £400.00 + £800.00 + £300.00 = £1,500.00, so total pay is £2,700.00. As a retroactive plan, 6% applies to all sales: £2,700.00. In a quiet month with £10,000 of sales, banded commission is £200.00 and total pay £1,400.00, below the £2,065.38 minimum for 37.5 hours a week at £12.71, so the employer must pay an extra £665.38.

Frequently asked questions

What is the difference between banded and retroactive commission?

With bands, a higher rate applies only to the sales above its threshold. With retroactive tiers, it applies to all sales once the threshold is reached, so commission jumps at the threshold: at 4% below £40,000 and 6% from £40,000, sales of £39,999.99 earn £1,600.00 and sales of £40,000 earn £2,400.00. Your contract or commission plan says which one you are on.

Does commission count towards the National Minimum Wage?

Yes. HMRC counts incentive payments that relate only to the worker’s own performance, such as sales commission. Overtime and shift premiums, tips and expense payments do not count. The check is made for each pay reference period, which is never longer than a month; commission earned in one period and paid in the next still counts towards the period in which it was earned.

Is commission taxed like salary?

Yes. Employers record commission in payroll as normal pay, so it goes through PAYE with your salary. The figures here are before tax and National Insurance; a take-home pay calculator shows what reaches your bank account.

Is commission included in holiday pay?

In England, Scotland and Wales, yes, for the 4 weeks of statutory leave that regular-hours workers must be paid at their ‘normal’ rate of pay, which includes commission; the remaining 1.6 weeks can be paid at the basic rate. Irregular-hours and part-year workers are paid all their leave at the normal rate. Bonuses are not usually included. These rules come from the Working Time Regulations 1998, which do not extend to Northern Ireland: it has its own.

When do the minimum wage rates change?

On 1 April each year. From 1 April 2027 they will be £13.21 at 21 and over, £11.27 at 18 to 20, and £8.31 for under-18s and apprentices. This calculator uses the rates in force since 1 April 2026.

What about self-employed sales agents?

The commission is worked out the same way, but the minimum wage check does not apply: someone working on a genuinely self-employed basis for a client is not a worker and is not entitled to the minimum wage.

Sources

  1. GOV.UK: National Minimum Wage and National Living Wage rates (5 November 2026)
  2. GOV.UK: Calculating the minimum wage (HMRC guidance), pay that counts, incentive pay and deferred pay (1 April 2025)
  3. GOV.UK: Calculating the minimum wage (HMRC guidance), eligibility for the minimum wage (23 October 2026)
  4. GOV.UK: Holiday entitlement, holiday pay (5 November 2026)
  5. legislation.gov.uk: The Working Time Regulations 1998, regulation 1 (they extend to Great Britain only) (30 July 1998)
  6. GOV.UK: Running payroll, employees’ pay (25 October 2024)

This calculator gives general information, not legal, tax, financial or accounting advice. Your contract and commission plan decide what you are owed: if in doubt, ask your employer or an adviser.

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