Free tool
Sales commission calculator
To calculate sales commission, multiply the calculation base by the agreed rate. The base can be revenue, the margin on the sale or the amount above quota. Fill in the fields below to see the commission for the period, the rep's total pay and what share of their sales it represents.
How much the rep sold in the month (or in whatever period you pay commission on).
Leave it at zero if pay is 100% variable.
Commission for the period
R$1,500.00
3% on R$50,000.00
- Base salary
- R$2,000.00
- Total pay
- R$3,500.00
- Commission as % of sales
- 3%
- Total rep cost
- 7%
The right number isn't the one that fits the spreadsheet — it's the one the team can chase and the company can pay every month.
Take the free assessmentHow to calculate sales commission
The math is always the same — base × rate — and the whole decision lies in choosing the base. The base is what defines the behavior the model will reward.
1. Flat rate on revenue
The rate applies to everything sold. It’s the simplest model to run and to explain, and the easiest for reps to check on their own — which cuts down on end-of-month arguments. The problem shows up when reps are free to give discounts: a full-price sale and a discounted sale pay almost the same, and closing fast becomes worth more than closing well.
2. Tiered by quota
One rate up to quota and another, higher one on the excess. It pays more for the effort that is actually harder, instead of paying the same for every real (R$) sold. It only works with an attainable quota: a tier nobody reaches changes no behavior at all.
3. On margin
Commission applies to what’s left after cost. It’s the right model whenever reps can negotiate price, because the discount now comes out of the pocket of whoever gave it. It requires something many companies don’t have: knowing the margin on each sale at the moment it closes.
The number almost nobody looks at
The commission discussion usually stops at the rate. The number that decides whether the model is sustainable is a different one: the rep’s total cost over the margin they generate. Base salary, plus commission, plus payroll charges, divided by the margin brought in.
Above 50%, the model weighs on the company and growth gets expensive. Below 20%, it usually weighs on the rep — and turnover collects the difference, with interest, in rehiring and ramp-up. The calculator above shows this percentage.
Mistakes that always show up
- Paying commission on orders instead of on payments received. You pay for sales that may never come in. In an operation with payment defaults, that turns into a loss.
- Changing the rules mid-period. It destroys trust in the model, and a model nobody trusts stops driving behavior.
- Rules reps can’t calculate on their own. If they don’t know how much they’ll earn when they close a sale, the incentive doesn’t exist at the moment it needs to — during the negotiation.
- Paying commission only on the close. In long sales cycles, the person who books the meeting isn’t the one who signs. A model that ignores this breaks the handoff between pre-sales and sales.
Frequently asked questions
What is the most common sales commission rate in Brazil?
There's no single number: it varies with the margin on what's sold and with how much of the pay is fixed. In product sales with tight margins, commission usually falls between 1% and 3% of revenue. In services and consultative sales, 5% to 10% is common when the base salary is low. The number that matters isn't the rate, it's how much the rep takes home at the end of the month and what share that is of what they bring in.
Should commission be calculated on revenue or on margin?
On margin, whenever the rep has the power to give discounts. Commission on revenue pays the same for a full-price sale and for a sale discounted to the limit — and the rep, rationally, picks the second, because it closes faster. On margin, the discount comes out of the pocket of whoever gave it.
How does tiered commission by quota work?
One rate applies up to quota and another, higher one to whatever exceeds it. It's a way to pay more for exactly the effort that's hardest — the last third of the quota — instead of paying the same for every real (R$) sold. It works when the quota is attainable: a tier nobody reaches doesn't change behavior, it only frustrates.
Is sales commission required by law?
In Brazil it isn't mandatory, but when it exists it becomes part of pay and is reflected in vacation pay, the 13th-month salary, FGTS (the severance fund) and notice pay (Law 3.207/57 and the CLT, Brazil's labor code). Once granted on a regular basis, it can't be withdrawn unilaterally. This is general guidance and does not replace advice from your accountant or lawyer.
What's the difference between commission, bonus and award?
Commission is a percentage of the sale and follows each closed deal. A bonus is a fixed amount tied to hitting a result (meeting quota, for example). An award is occasional and discretionary. The difference matters because the three have different treatment under labor law and different effects on team behavior.
How do I know if my commission is too expensive?
Compare the rep's total cost — base salary plus commission plus payroll charges — with the margin they bring in. If the total cost exceeds half of the margin generated, the model is too heavy for the company. If it's below 20%, it's probably too heavy for the rep, and turnover will collect the difference. The calculator above shows this percentage under 'total rep cost'.
When the spreadsheet stops being enough
Calculating commission is the easy part. The hard part is having a number everyone trusts — which requires every sale to be logged, with the right margin, at the right stage, without depending on someone remembering to enter it. It’s the same data that supports revenue forecasting and rep evaluation.
That logging is what Nexo builds: sales consulting to design the model and the process, and an AI-powered CRM on WhatsApp so the data exists without manual work. If you’d like a read of your operation before any conversation, the free assessment takes 4 minutes.