Plan A
Contribution floor met
- Net commission payout
- 8,100.00
- Effective commission rate
- 3.5%
- Contribution after commission
- 28,400.00
- Break-even revenue
- 205,802.47
Before clawback 8,400.00 · refund exposure 600.00 · recovered 300.00
Educational only: Business decision support, not accounting, tax or legal advice.
Privacy: No account is required. Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Owners comparing sales incentives against gross contribution and support costs.
Outputs
Commission payout, effective commission rate, contribution after commission and break-even revenue for two plans.
Start here
Enter the same sales economics for both plans, then compare tier mode, rates and refund-specific recovery assumptions.
Use a different tool when: Do not use this to compare base, upside and downside monthly budgets to identify annual operating profit, cumulative break-even and the action gap; use Business Budget & Profit Forecast for that decision. Use this tool to compare commission plans and tier behaviour while protecting contribution after pay, refunds and sales-support cost.
Cash & growth
Sales Commission Plan Profitability: commission payout
Commission payout, effective commission rate, contribution after commission and break-even revenue for two plans.
Amounts use the same currency as your inputs. No currency conversion is performed.
Sales economics and plan rules
Use one currency and period. This global owner deliberately excludes payroll-tax and jurisdiction rules.
Plan comparison
Payout and retained-contribution view.
PDF and CSV exports stay on this device. Clean page links contain no inputs.
Plan B
Contribution floor met
- Net commission payout
- 5,287.50
- Effective commission rate
- 2.3%
- Contribution after commission
- 31,212.50
- Break-even revenue
- 196,043.08
Before clawback 5,400.00 · refund exposure 225.00 · recovered 112.50
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Plan A commission payout
Plan A net commission payout
commission before clawback − refunded commission exposure × recovery rate8,100Result8,100.00
Engine result using the selected base, tier mode, exact tier boundaries, refunds and refund-specific commission recovery. The engine retains raw precision; the registered money or percentage formatter rounds only the displayed result.
Review the commission tier and contribution formulas →Inputs used by these formula steps
- Plan A net commission payoutCommission Before Clawback
- 8,400
- Plan A net commission payoutRefunded Commission Exposure
- 600
- Plan A net commission payoutRecovery Rate
- 0.5
Plan A effective commission rate
Plan A effective commission rate
net commission payout ÷ eligible retained revenue0.04Result3.5%
Engine result using the selected base, tier mode, exact tier boundaries, refunds and refund-specific commission recovery. The engine retains raw precision; the registered money or percentage formatter rounds only the displayed result.
Review the commission tier and contribution formulas →Inputs used by these formula steps
- Plan A effective commission rateCommission Payout
- 8,100
- Plan A effective commission rateEligible Revenue
- 230,000
Plan A contribution after commission
Plan A contribution after commission
retained-sales contribution − commission payout − base pay − sales-support cost28,400Result28,400.00
Engine result using the selected base, tier mode, exact tier boundaries, refunds and refund-specific commission recovery. The engine retains raw precision; the registered money or percentage formatter rounds only the displayed result.
Review the commission tier and contribution formulas →Inputs used by these formula steps
- Plan A contribution after commissionRetained Sales Contribution
- 103,500
- Plan A contribution after commissionCommission Payout
- 8,100
- Plan A contribution after commissionBase Pay
- 55,000
- Plan A contribution after commissionSales Support Cost
- 12,000
Plan A break-even revenue
Plan A break-even revenue
lowest revenue where contribution after commission reaches contribution floor205,802.47Result205,802.47
Engine result using the selected base, tier mode, exact tier boundaries, refunds and refund-specific commission recovery. The engine retains raw precision; the registered money or percentage formatter rounds only the displayed result.
Review the commission tier and contribution formulas →Inputs used by these formula steps
- Plan A break-even revenueContribution Floor
- 15,000
Plan B commission payout
Plan B net commission payout
commission before clawback − refunded commission exposure × recovery rate5,287.5Result5,287.50
Engine result using the selected base, tier mode, exact tier boundaries, refunds and refund-specific commission recovery. The engine retains raw precision; the registered money or percentage formatter rounds only the displayed result.
Review the commission tier and contribution formulas →Inputs used by these formula steps
- Plan B net commission payoutCommission Before Clawback
- 5,400
- Plan B net commission payoutRefunded Commission Exposure
- 225
- Plan B net commission payoutRecovery Rate
- 0.5
Plan B effective commission rate
Plan B effective commission rate
net commission payout ÷ eligible retained revenue0.02Result2.3%
Engine result using the selected base, tier mode, exact tier boundaries, refunds and refund-specific commission recovery. The engine retains raw precision; the registered money or percentage formatter rounds only the displayed result.
Review the commission tier and contribution formulas →Inputs used by these formula steps
- Plan B effective commission rateCommission Payout
- 5,287.5
- Plan B effective commission rateEligible Revenue
- 230,000
Plan B contribution after commission
Plan B contribution after commission
retained-sales contribution − commission payout − base pay − sales-support cost31,212.5Result31,212.50
Engine result using the selected base, tier mode, exact tier boundaries, refunds and refund-specific commission recovery. The engine retains raw precision; the registered money or percentage formatter rounds only the displayed result.
Review the commission tier and contribution formulas →Inputs used by these formula steps
- Plan B contribution after commissionRetained Sales Contribution
- 103,500
- Plan B contribution after commissionCommission Payout
- 5,287.5
- Plan B contribution after commissionBase Pay
- 55,000
- Plan B contribution after commissionSales Support Cost
- 12,000
Plan B break-even revenue
Plan B break-even revenue
lowest revenue where contribution after commission reaches contribution floor196,043.08Result196,043.08
Engine result using the selected base, tier mode, exact tier boundaries, refunds and refund-specific commission recovery. The engine retains raw precision; the registered money or percentage formatter rounds only the displayed result.
Review the commission tier and contribution formulas →Inputs used by these formula steps
- Plan B break-even revenueContribution Floor
- 15,000
Inputs used
- Revenue
- 240,000
- Gross contribution
- 108,000
- Quota
- 200,000
- Refund commission recovery rate
- 0.5
Record and compare these plan rules
Save the current plan results, change tier or refund assumptions, then compare with the immutable snapshot.
ScenarioResultDifference
Plan A contribution after commission28,400.00Baseline
Plan B contribution after commission31,212.502,812.50
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| basePay | base pay. | currency units/planning period | 0 to 1000000000 | Required | 55000 |
| contributionFloor | contribution floor. | currency units/planning period | 0 to 1000000000 | Required | 15000 |
| grossContribution | gross contribution. | currency units/planning period | 0 to 1000000000 | Required | 108000 |
| planACommissionBase | plan acommission base. | closed commission-base code | 0 (Revenue), 1 (Gross contribution) | Required | 0 |
| planATier1Rate | plan atier1 rate. | decimal fraction of commission base | 0 to 10 | Required | 0.03 |
| planATier2At | plan atier2 at threshold. | decimal quota-attainment multiple | 0 to 10 | Required | 1 |
| planATier2Rate | plan atier2 rate. | decimal fraction of commission base | 0 to 10 | Required | 0.06 |
| planATier3At | plan atier3 at threshold. | decimal quota-attainment multiple | 0 to 10 | Required | 1.25 |
| planATier3Rate | plan atier3 rate. | decimal fraction of commission base | 0 to 10 | Required | 0.09 |
| planATierMode | plan atier mode. | closed commission-tier mode code | 0 (Marginal), 1 (Retroactive) | Required | 0 |
| planBCommissionBase | plan bcommission base. | closed commission-base code | 0 (Revenue), 1 (Gross contribution) | Required | 1 |
| planBTier1Rate | plan btier1 rate. | decimal fraction of commission base | 0 to 10 | Required | 0.02 |
| planBTier2At | plan btier2 at threshold. | decimal quota-attainment multiple | 0 to 10 | Required | 1 |
| planBTier2Rate | plan btier2 rate. | decimal fraction of commission base | 0 to 10 | Required | 0.05 |
| planBTier3At | plan btier3 at threshold. | decimal quota-attainment multiple | 0 to 10 | Required | 1.25 |
| planBTier3Rate | plan btier3 rate. | decimal fraction of commission base | 0 to 10 | Required | 0.07 |
| planBTierMode | plan btier mode. | closed commission-tier mode code | 0 (Marginal), 1 (Retroactive) | Required | 1 |
| quota | quota. | currency units/planning period | 0 to 1000000000 | Required | 200000 |
| refundCommissionRecoveryRate | refund commission recovery rate. | decimal fraction of commission base | 0 to 10 | Required | 0.5 |
| refundsAndCancellations | refunds and cancellations. | currency units/planning period | 0 to 1000000000 | Required | 10000 |
| revenue | revenue. | currency units/planning period | 0 to 1000000000 | Required | 240000 |
| salesSupportCost | sales support cost. | currency units/planning period | 0 to 1000000000 | Required | 12000 |
Sales Commission Plan Profitability: commission payout
Compare incentive cost with contribution retained; the lower payout is not automatically the better sales plan.
Formula summary
- Primary formula
- contribution after commission = retained-sales contribution − payout − base pay − support cost
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Act on the result
Choose the plan whose tier behaviour and contribution floor match the intended sales behaviour, then document the rules clearly.
Stress-test the decision
Test refund exposure, attainment at exact tier boundaries and a lower gross-contribution rate before approving the plan.
When this estimate can be misleading
- The global planner excludes payroll tax, employment law, award, benefits and jurisdiction-specific remuneration rules.
- Refund recovery applies only to commission attributable to refunded or cancelled revenue; it is not a blanket payout discount.
- Sales response, behaviour and retention are not predicted by the commission calculation.
- Compare incentive cost with contribution retained; the lower payout is not automatically the better sales plan.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Sales Commissions: Revenue Growth or Margin Transfer?
Compare a commission plan with a reproducible no-plan baseline after payout, refunds, support cost and attribution limits.
Read guide
Frequently asked questions
How do I compare commission plans and tier behaviour while protecting contribution after pay, refunds and sales-support cost?
Choose the plan whose tier behaviour and contribution floor match the intended sales behaviour, then document the rules clearly.
Does Margin101 store my numbers?
Tool inputs and results stay in this browser. Anonymous categorical usage analytics send only governed page, tool, cluster and action identifiers; tool inputs and results are never sent. Error monitoring is disabled. Optional saved state stays only on this device.
Is this accounting advice?
No. It is educational planning support; verify the assumptions against your records and obtain qualified advice where appropriate.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.