Flat rate on sales, plus base
A flat commission plan pays one rate on eligible sales. Total pay for the period is base salary plus that commission. Markup and margin turn a product cost into a price; gross margin and contribution margin measure profit on revenue. This page prices a salesperson’s paycheck. Reverse mode divides the commission still needed by the rate to find the sales that hit a target.
Total pay = base pay + commission
Sales needed = (target pay − base pay) ÷ commission rate
Example
$80,000 of sales at 8% is $6,400 of commission. Adding a $4,000 base produces $10,400 total pay. Reaching $10,400 from that $4,000 base at 8% still needs $80,000 of sales. A $0 base at 10% on $50,000 is $5,000 of commission.
What this plan leaves out
Tiered slabs, residual or renewal rates, draws against commission, splits with a house or broker, taxes, and benefits sit outside the flat-rate formula. Use the same period for sales, base, and the target. At a 0% rate, a target exactly equal to base needs $0 of sales; a target above base is unreachable.