Choose revenue, gross-margin, OTE, tiered, or draw compensation to estimate gross pay. Use the same annual or monthly period for all amounts; changing the period label does not convert them. Amounts are in US dollars.

Estimate gross pay before taxes and deductions, using base pay and eligible sales from the same period.

All amounts must use this period. Changing the label does not convert amounts.

US dollars for the selected period; up to two decimal places.

US dollars for the selected period; up to two decimal places.

For example, 5% equals 0.05 decimal. Unit changes convert the value.

Base Plus Commission Formula

The following formula applies to simple revenue commission. For gross-margin commission, replace sales with sales × gross-margin percentage / 100.

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)

For simple commission, multiply eligible sales revenue by the decimal commission rate and add base salary. OTE includes base plus target variable pay; the calculator offers capped and accelerated models. Tiered rates apply only within each stated range, with gaps earning no commission. A non-recoverable draw is a minimum variable-pay guarantee, so pay is base + max(draw, commission). A recoverable draw is an advance that commission offsets, including any prior balance. Use Additional fixed payment only when the payment is added on top of commission. These are planning estimates; your agreement controls actual payroll.

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.

  1. First, determine the base salary ($).
  2. Next, determine eligible sales revenue ($) for the same period as base salary.
  3. Next, enter the commission rate: 5% or 0.05 with the decimal unit selected.
  4. Next, use the formula TE = B + (S * C) to calculate the Total Earnings.
  5. 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

eligible sales revenue ($) = 100

commission rate (decimal) = 0.05; estimated gross pay = $500 + ($100 × 0.05) = $505