Enter the base salary and total sales made into the calculator to determine the total earnings. This calculator can also evaluate any of the variables given the others are known.
Base Plus Commission Formula
The following formula is used to calculate the total earnings from a base salary plus commission.
TE = B + (S * C)
Variables:
- TE is the total earnings ($)
- B is the base salary ($)
- S is the total sales made ($)
- C is the commission rate (decimal)
To calculate the total earnings, multiply the total sales made by the commission rate per sale, then add the base salary. This will give you the total earnings from a base salary plus commission.
What is a Base Plus Commission?
A Base Plus Commission is a type of compensation structure commonly used in sales jobs, where employees receive a basic, guaranteed salary (base pay) and also have the opportunity to earn additional income (commission) based on the sales they make. The base pay ensures a steady income regardless of sales performance, while the commission serves as an incentive for the employee to make more sales. The specific percentage or amount of commission varies depending on the company’s policies and the individual’s sales performance.
How to Calculate Base Plus Commission?
The following steps outline how to calculate the Total Earnings for a Base Plus Commission.
- First, determine the base salary ($).
- Next, determine the total sales made (units).
- Next, determine the commission rate per sale (decimal).
- Next, use the formula TE = B + (S * C) to calculate the Total Earnings.
- Finally, insert the variables and calculate the result.
Example Problem:
Use the following variables as an example problem to test your knowledge.
base salary ($) = 500
total sales made (units) = 100
commission rate per sale (decimal) = 0.05
