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Salary vs Commission Calculator

Compare a fixed salary with a base-plus-commission plan: the break-even sales level, pay at your expected sales, how much of the pay is commission and a table of outcomes from slow to strong years.

Fixed salary offer (per year)
Commission plan: base salary (per year)
Commission rate
Commission paid only on sales above
Expected annual sales
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How it works

commission plan pay = base + (sales − threshold) × rate · break-even sales = threshold + (fixed salary − base) ÷ rate · difference = commission plan pay − fixed salary

A base-plus-commission plan swaps some guaranteed pay for upside. The key number is the break-even sales level: below it the fixed salary pays more, above it the commission plan wins. Compare that level with what you — or others in the role — have realistically sold, and look at a weak year as well as a good one, since commission income can swing widely. Draws, accelerators, caps and clawbacks change the picture; use the result as a first comparison.

Worked example

A fixed salary of $60,000 against a $35,000 base plus 8% commission. The commission plan has to make up $25,000, so break-even is $25,000 ÷ 0.08 = $312,500.00 in sales. At $400,000 of expected sales it pays $35,000 + $32,000 = $67,000.00, which is $7,000.00 more than the salary; 47.76% of that pay is commission. At $200,000 of sales it would pay only $51,000.

Frequently asked questions

How do I compare salary and commission?

Find the break-even sales: (fixed salary − base) ÷ commission rate. If you expect to sell more than that, the commission plan pays more.

Is a commission job worth it?

If your realistic sales comfortably exceed the break-even and you can live on the base in a slow year, often yes. If sales are uncertain, the fixed salary is safer.

What if commission only starts above a quota?

Enter the threshold: commission is then paid only on sales above it, which raises the break-even by that amount.

What is a typical salary-to-commission split?

Many sales roles use 50/50 to 70/30 (base/variable) at target; pure-commission roles have no base at all.

Related calculators

Estimates for planning only. Your employment contract, collective agreement and local labor law decide what you are actually owed; check with your employer, payroll team or a qualified adviser before relying on a figure.