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Tiers are marginal — see what each band really pays.
Tiered commission plans work like tax brackets: each rate applies only to the sales inside its band, so hitting the top tier does not retroactively raise the rate on everything. This calculator applies your plan's tiers marginally and shows the payout per band, the total commission, and your true blended rate — the number to compare across comp plans.
Salespeople use it when the comp plan lands and again at every commission check: marginal tiers make the payout non-obvious, and the blended rate is the only honest way to compare plans. Managers use it to model what a proposed tier change costs.
Marginally. With tiers of 5% up to $50k, 8% up to $100k, and 12% above that, $120,000 in sales pays 5% × $50,000 + 8% × $50,000 + 12% × $20,000 = $8,900 — not 12% of $120,000 ($14,400). Always check whether your plan is marginal ("tiered") or retroactive ("the top rate applies to everything once you cross it"); the difference is enormous.
Total commission divided by total sales. In the example above it is $8,900 ÷ $120,000 = 7.42%. Blended rate is the honest way to compare two comp plans with different tier structures.
Accelerators raise your rate after you pass quota (e.g., 1.5× beyond 100% attainment) and decelerators cut it below a floor. Model an accelerator by entering your above-quota sales with the multiplied rate in tier 3. Commission-only draws and clawbacks are separate mechanics — check your plan document.