Table of contents
In many industries, sales professionals collaborate to close deals, leading to a shared total commission. A split commission calculator helps divide this commission amount among multiple agents based on predefined percentage splits. Whether working in real estate, insurance, or SaaS, understanding how to split commissions ensures fairness and proper incentives.
What is a split commission?
A split commission occurs when multiple salespeople contribute to closing a deal. Instead of one person earning the full commission percentage, the commission earned is divided based on pre-agreed percentages.
Companies define commission splits based on seniority, role, or deal contribution. Some common types of commission structures include:
- Even split: Each participant receives an equal portion of the total commission.
- Percentage split: A commission rate is assigned to each agent based on contribution.
- Tiered commission structure: The commission split follows a predefined scale where higher sales volumes earn a larger percentage.
Split Commission Calculator
How to calculate split commissions
A split calculator simplifies the process, but knowing the formula helps ensure accurate results. The basic calculation follows this formula:
Commission amount = total sales price × commission percentage
Then, the individual share is calculated as:
Agent receive = commission amount × percentage split
Example 1: Even split
A company closes a deal worth $50,000, with a sales commission calculator determining a total commission of 10%. Two agents contributed equally.
- Total commission = $50,000 × 10% = $5,000
- Each agent earns = $5,000 ÷ 2 = $2,500
Example 2: Percentage-based split
A real estate brokerage assigns 70% of the commission earned to the lead agent and 30% to the supporting agent. The deal is worth $100,000 with a commission rate of 6%.
- Total commission = $100,000 × 6% = $6,000
- Lead agent receives = $6,000 × 70% = $4,200
- Supporting agent receives = $6,000 × 30% = $1,800
Example 3: Tiered commission structure
A SaaS company implements a tiered commission structure, where the commission split depends on quota attainment.
- If the quota is below 80%, the commission percentage is 5%.
- If the quota is 80%-100%, it increases to 8%.
- If the quota exceeds 100%, it jumps to 12%.
An account executive closes a $200,000 deal while exceeding their quota.
- Total commission = $200,000 × 12% = $24,000
- The split commission calculator divides it among two team members: 60% to the closer, 40% to the sales engineer.
- Closer receives = $24,000 × 60% = $14,400
- Sales engineer receives = $24,000 × 40% = $9,600
Benefits of using a split commission calculator
A calculator to determine commissions eliminates manual errors and ensures fair compensation. Some key advantages include:
- Accuracy: Prevents miscalculations when entering the total deal value.
- Efficiency: Saves time in determining commission splits.
- Transparency: Ensures every agent knows how commissions based on sales are allocated.
Calculating commissions for a complex team or compensation plan can be a nightmare—manual errors, time-consuming processes, and lack of transparency can lead to frustration and lost revenue. Remuner simplifies everything with automation, ensuring precise calculations, real-time adjustments, and seamless integrations.
Whether you’re dealing with multiple roles, tiered structures, or performance-based incentives, Remuner’s sales real time calculations guarantees accuracy, fairness, and efficiency. Stop wasting time on spreadsheets and start optimizing your compensation strategy with a solution built for growth. Try Remuner today and see the difference!
Use a sales compensation software to avoid mistakes
A split commission calculator simplifies commission calculations and ensures fair compensation for sales teams. Whether using percentage splits, tiered commission structures, or total commission distributions, having a clear system in place improves sales performance and keeps teams motivated.
Would you like to optimize your compensation plans? Try the Remuner calculator today to discover how much time and money you can save with a sales compensation software that helps you calculate those kind of commissions. Start today!
