# Sales Commission Calculator Template

## What Is a Sales Commission Calculator?

A Sales Commission Calculator is a document that a company uses to calculate the sales commission that this organization must pay to its employees for making sales. "Sales commission" is a reward for completing the sale transaction, and it provides workers with additional income. The commission amount is usually based on different criteria and conditions.

You can create a Sales Commission Calculator in Excel. This document is functional and convenient because it contains predefined formulas, automated cells, and calculations. The document structure may be represented as a spreadsheet consisting of several columns and rows, the names of which may differ depending on the commission calculation method and the compiler's needs.

## How to Calculate Sales Commission?

A typical Sales Commission Calculator Spreadsheet usually contains the following columns:

1. Employee's Name. Enter the name of each worker in a separate row.
2. Total Sales Amount. Provide the total amount of sales made by this employee for the specified period.
3. Commission Percentage or Commission Rate. Indicate the commission percentage assigned to this employee for making the indicated sales amount.
4. Commission Amount or Payout. Enter the commission amount charged to the worker. You can obtain this sum by entering the following formula: multiply "total sales amount" by "commission percentage." The commission rate must be expressed in hundredths.

Your Sales Commission Calculator may also contain the total sales amount of all workers and the full commission amount paid to them.

You can make the Sales Commission Calculator more detailed and calculate the sales commission for each employee transaction separately. In this case, include in the document this information: the date of sale, the legal name of the customer, and order number. Assign appropriate names to the columns. Indicate the name of the employee, responsible for every transaction, and enter the commission rate.

You can calculate the commission amount based on:

• The proceeds received from the sale. In this case, create one additional "proceeds" column. Enter the formula for calculating the payout: multiply "proceeds" by "commission rate;"
• Profit received from the sale. In this case, create three columns: "proceeds," "cost," and "profit." Enter the following formula for calculating the payout: subtract "cost" from "proceeds," and multiply "profit received" by the "commission percentage."

Create a separate row that contains the total sales and commission amounts of each employee.

You may also create an additional spreadsheet reflecting the differentiation of commission rates. They may vary depending on an employee's work experience in the organization. The longer an employee has worked for the company, the higher the commission percentage they deserve. The commission rate may also depend on the amount of revenue or profit received from the particular order.

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