The formula
Commission = sales up to quota × rate + sales above quota × accelerator rate.
How to use it
- Set the accelerator equal to the commission rate if your plan has none.
- Some plans pay on gross margin or on collected cash instead of bookings; adjust the sales figure to match.
- This is an estimate. Your compensation plan and contract decide what is paid.
Frequently asked questions
What is a typical commission rate?
It varies widely by industry and deal size, so use your own plan. A common way to check a plan is that total pay at 100% of quota should match the target on-target earnings for the role.
What is an accelerator?
A higher commission rate paid on sales above quota, meant to reward overperformance.