Draw Against Commission Calculator
See what a salesperson takes home after a draw is reconciled against commission earned — and any balance still owed on a recoverable draw.
How it works
Owed = current draw + prior balance · Additional paid = max(0, commission − owed) · Shortfall = max(0, owed − commission) · Carryover = shortfall if recoverable, else 0
A draw against commission is an advance the salesperson receives before commissions are tallied. At period end the commission is reconciled against the draw: if it exceeds the draw the rep is paid the remainder, and if it falls short the draw acts as a floor. A recoverable draw treats the shortfall as a debt that carries forward, while a non-recoverable draw forgives it, functioning like a guaranteed minimum.
Worked example
With a $2,000 recoverable draw and $3,500 in commission earned, the $3,500 first repays the $2,000 advance, leaving $1,500 paid on top — $3,500 received in total, no balance carried. Had commission been only $1,500, the rep would still keep the $2,000 draw and carry a $500 balance forward.
Frequently asked questions
What is the difference between recoverable and non-recoverable draws?
A recoverable draw is a loan against future commissions — shortfalls carry forward until repaid. A non-recoverable draw is a guarantee: if commissions fall short, the rep keeps the draw and owes nothing, so it works like a salary floor.
Is a draw the same as a salary?
No. A draw is an advance on commissions the rep is expected to earn back. A salary is fixed pay that is not reconciled against commission. Some plans combine a base salary with a draw on top.
What happens to a recoverable balance if the rep leaves?
It depends on the employment agreement and state law. Some states restrict recovering a draw balance from a departing employee’s final pay; review the contract and local rules before deducting anything.
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Educational payroll estimate, not tax, payroll or legal advice. Rules and rates vary by jurisdiction and employer — confirm with your payroll department.