About tiered sales commission calculator
Tiered commission uses different rates for different slices of sales. Each rate applies only to the part of the sales inside its tier.
Example
First ₹1,00,000 at 2%, next ₹1,00,000 at 4%, anything above at 6%. On ₹2,50,000 of sales: 2,000 + 4,000 + 3,000 = ₹9,000.
Why companies use tiers
Tiers reward higher performance without paying the top rate on all sales.
Another worked example
With tiers of 2 percent up to ₹1,00,000, 4 percent on the next ₹1,00,000 and 6 percent above ₹2,00,000, sales of ₹3,50,000 earn 2,000 + 4,000 + 9,000 = ₹15,000. Selling just ₹10,000 more adds ₹600, since the top tier applies to the extra.
Design tips
Tiers motivate people to push past targets. Make them easy to understand, and cap or review them if they lead to unexpected payouts.
