With so many sales compensation types and models, it can be difficult to determine how much money a sales rep will make.
Bonuses, base, commission, tiers – where does it end?
That's why we've crafted this sales compensation calculator to help you determine compensation in seven different comp models. By entering projected sales, commission rates, and base salary, you'll be able to determine a projected salary amount.
First, choose which sales compensation plan is used in your company. Second, determine how much the rep will sell in dollars. Finally, add any commission from those sales to the rep's salary to calculate total sales comp. You can also use this free Sales Compensation Calculator to see which compensation plan works best for your organization.
To calculate comp percentage, simply divide the salesperson's total compensation by how much they sold in a given time. This will yield their compensation percentage compared to their sales.
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Because there are different ways to structure a sales compensation plan, you should run your organization's projected revenue alongside multiple different structures to see which one yields the preferred commission to the sales staff while retaining the right amount for your business. HubSpot's Free Sales Compensation Calculator can help determine which plan is best in your company.
A salesperson should sell at least enough to hit their on-target earnings (OTE). The business sees that as the minimum amount a rep should sell in a given time. Anything past OTE, a rep might make a higher rate of commission on that sale.
A sales bonus is calculated by applying the agreed-upon bonus percentage to the amount sold. For example, if someone sells $100,000 over their OTE and was told they would receive a 10% bonus for doing so, that rep would earn a sales bonus of $10,000.