# Profit based commission:

The percentage amount of money that is paid on the specific amount of sales conducted by the salesperson is known as commission rate. The total amount of sales and the net profit of the company are some factors on which the commission amount depends.

When a business sells those products, which have a huge difference between profits at different sales, it offers a profit-based commission. This is an effective way for a business to reward the salespersons with the commission amount when they sell the product at a high profit.

When you are running a business where lots of salespersons are working who are being paid commission, the sales commission calculator is a must-have for you.

## What is a sales commission & costing calculator?

It is spreadsheet software that calculates the value of commission that a business is required to pay to its salespersons. The cost a business must incur in the form of a commission is also calculated with the help of this calculator. The sales commission and costing calculator also keeps track of all the sales which have been made by the salespersons that are to be commissioned.

Commission rate is the percentage amount given to the salesmen on a fixed amount of sales; Commission depends on the total amount as well as on other factors like gross and net profit.  At sometimes business offers a profit based commission when there is a marked difference between the profits of different products. It could be an additional payment to the salesman who sells the product at the most profitable price.

• If the business wants to take out the overdue cash from some customers than the sales staff is initiated the gain commission on the total cash received from the sales.
• If your business offers a commission on inventory which is going to be obsolete soon, it means that the business wants to kick out those products from the stocks.
• If the salesperson brings some extraordinary percentage of sales then it is called override than the commission rate is quite different and slightly high from the ordinary rates.

As the name indicates split commission is distributed among those salespeople who are working together for the same sales, however, if the manager takes some portion of the commission along with the salesmen then also it is known as a split commission.

Hence there are many forms of sales commission offered to the concern salesmen for gaining better profit and employee satisfaction. Calculating the sales commission in every category is a mindful effort and needs an account officer to do so, to save an extra employee salary for calculating sales commission, it is better to download online free templates of sales commission template. These calculators estimate the correct percentage of sales commission with a fully customizable option and easy to download and print options.

Calculating the sales commission needs some effort to put. A business must hire a special account expert for doing this job. Use of commission calculator and costing calculator template enables the business to calculate everything accurately without hiring anyone.

In this way, a business can save itself from a lot of costs. The template has pre-defined formulas that perform the calculations automatically once the user finishes addition data into the spreadsheet calculator.

There are certain fields in this spreadsheet document that ask the user to provide different details such as total sales amount, the percentage of commission, the quantity of commission etc. The calculator performs the calculations quickly and so saves the time of the user.

A business performs the calculations manually to pay their salespersons. This method is somehow effective. However, when the business grows, the manual calculations become daunting since there are lots of salespersons conducting the sales.

Sales Commission Calculator