What the calculator does
The usual pieces of a commission plan.
- Three progressive tiers with your own thresholds and percentages.
- A sourcer or team cut taken from profit before tiers apply.
- A monthly desk fee.
- A recoverable draw, with any unrecovered balance carried forward.
How tiers work
Each rate applies only to the slice of profit inside its band, not to all profit once a threshold is crossed.
Worked example
With $30,000 of gross profit and a 15% sourcer cut, commissionable profit is $25,500. Tiers at 30% up to $10,000, 40% up to $25,000 and 50% above pay $3,000 + $6,000 + $250 = $9,250. After a $500 desk fee and a $1,500 draw recovered, the check is $7,250.
Your plan decides
Real plans differ in bands, splits and how draws recover. Use this to model your plan, and check the written terms.
Frequently asked questions
What is a recoverable draw?
An advance on future commission. It is recovered from commission as deals close, and an unrecovered balance carries forward.
Are tiers applied to all profit?
In a progressive plan, no: each percentage applies only to the profit inside its band.