How tiered commission is calculated
The reference commission rate is target variable divided by quota. Booked revenue is reduced by the split-credit percentage before attainment is calculated. The simulator then checks the cliff and chooses the applicable payout rules.
Standard commission rate = target variable ÷ quota
Attainment = credited revenue ÷ quota
How cliffs and decelerators work
Below the cliff, tiered commission is zero. After the cliff is cleared but before quota, the active decelerator multiplier applies to all credited revenue. That is a retroactive below-quota model. It can create a payout jump when a rep crosses a band, which is why the band thresholds should match the signed plan exactly.
How marginal accelerator tiers work
At quota, the model starts with the full target variable. Revenue above quota is divided into tiers. Each tier's multiplier applies only to the revenue inside that tier, so moving into a new tier does not reprice earlier revenue.
Order of caps, draws, and clawbacks
The simulator caps gross tiered commission first, adds a fixed bonus, then deducts recoverable draw and clawback amounts. It floors the result at zero. A plan that carries a negative balance into later periods needs a separate ledger; this calculator does not invent that balance.
- Confirm whether each tier is marginal or retroactive.
- Confirm whether the cap includes bonuses.
- Check whether quota credit differs from cash split.
- Read the plan's booking, cancellation, and clawback definitions.
Read Sales Commission Tiers, Cliffs, and Accelerators for worked marginal and retroactive examples. If the written plan still leaves important rules unclear, use the Sales Job Red Flags guide to turn the missing definitions into specific questions before accepting the offer. The calculator can model a rule only after the company states it.