Base Plus Commission Calculator

Formula

The formula to calculate the Total Earnings is:

\[ TE = B + (S \times C) \]

Where:

$TE$ is the total earnings in dollars
$B$ is the base salary in dollars
$S$ is the total sales made in dollars
$C$ is the commission rate as a decimal

What is Base Plus Commission?

A Base Plus Commission is a type of compensation structure commonly used in sales jobs, where employees receive a basic, guaranteed salary (base pay) and also have the opportunity to earn additional income (commission) based on the sales they make. The base pay ensures a steady income regardless of sales performance, while the commission serves as an incentive for the employee to make more sales. The specific percentage or amount of commission varies depending on the company’s policies and the individual’s sales performance.

Example Calculation 1

Let's assume the following values:

Base Salary (B) = $50,000
Total Sales (S) = $200,000
Commission Rate (C) = 0.05

Using the formula:

\[ TE = 50,000 + (200,000 \times 0.05) = 50,000 + 10,000 = 60,000 \text{ dollars} \]

The Total Earnings are $60,000.

Example Calculation 2

Let's assume the following values:

Base Salary (B) = $40,000
Total Sales (S) = $150,000
Commission Rate (C) = 0.07

Using the formula:

\[ TE = 40,000 + (150,000 \times 0.07) = 40,000 + 10,500 = 50,500 \text{ dollars} \]

The Total Earnings are $50,500.