Sales commission formula in Excel or Google Sheets
Put the inputs in column B from row 2, then paste the formulas below. They work the same in Excel and Google Sheets.
| Cell | What | Value or formula | Example |
|---|---|---|---|
| B2 | Revenue closed ($) | 165000 | 165000 |
| B3 | Commission rate up to quota (%) | 8 | 8 |
| B4 | Quota ($) | 150000 | 150000 |
| B5 | Rate above quota (%) | 12 | 12 |
| B6 | Tax rate (%) | 22 | 22 |
| B8 | Commission earned ($) | =ROUND(MIN(B2,B4)*B3/100+MAX(0,B2-B4)*B5/100,0) | 13800 |
| B9 | Effective rate (%) | =ROUND(B8/B2*100,2) | 8.36 |
| B10 | Commission after tax ($) | =ROUND(B8*(1-B6/100),0) | 10764 |
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Frequently asked questions
- How do you calculate sales commission?
- Multiply revenue up to quota by the base rate, and revenue above quota by the accelerated rate. $165,000 closed on a $150,000 quota at 8% and 12% gives $12,000 + $1,800 = $13,800.
- What is a normal commission rate?
- SaaS reps often earn 8–12% of first-year contract value. Rates depend on how much of the deal the rep creates alone and on the pay mix between base and variable.
- What is an accelerator?
- A higher commission rate on revenue above quota. It rewards reps for over-performing and keeps them selling after they reach target.
- How do you calculate commission after tax?
- Multiply the commission by (1 − your tax rate). In the US, commission is often withheld at a flat 22% federal rate as supplemental pay, plus Social Security, Medicare and any state tax. $13,800 of commission at 22% is $10,764 after federal withholding.
- Is there a sales commission Excel template?
- Yes. The free Excel template below has revenue in B2, the base rate in B3, quota in B4, the rate above quota in B5 and the tax rate in B6, with =ROUND(MIN(B2,B4)*B3/100+MAX(0,B2-B4)*B5/100,0) for the commission. It opens in Excel and Google Sheets, so it works as a commission spreadsheet without extra software.
About the author
Abdessamad Ghanem
Customer Experience & Customer Success Consultant · Founder of Clarivoxx
Abdessamad Ghanem works across Customer Support, Sales, Customer Success, Account Management and Partner Management. He writes Clarivoxx Insights for B2B SaaS professionals who own retention, adoption and customer outcomes.