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How to calculate commission in Excel and Google Sheets
Topic:Finance basicsExcel & Google Sheets
=A2*B2✓
Verified example
Computed by a real spreadsheet engine on the sample data below.
| Sales Amount | Commission Rate | Commission |
| 5000 | 0.05 | |
| 12000 | 0.07 | |
| 800 | 0.1 | |
| 25000 | 0.06 |
=A2*B2→250
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Step by step
- 1Set up columns: Sales Amount (A) and Commission Rate as a decimal (B, e.g., 0.05 for 5%).
- 2In the Commission column, enter =A2*B2 to compute the commission for each sale.
- 3For tiered commissions (e.g., 5% up to $10,000, then 8% beyond), use a nested IF: =IF(A2<=10000, A2*0.05, 10000*0.05+(A2-10000)*0.08).
Tips
- Lock the commission rate cell with $ signs if it is shared across rows: =A2*$B$1, so you only need to update the rate in one place.
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Frequently asked
How do I apply different commission rates to different salespeople?
Put each person's rate in their own column or use VLOOKUP to look up the rate from a separate table based on the salesperson's name or ID.
Can I calculate commission only above a sales threshold?
Yes: =MAX(A2-threshold,0)*B2. This returns zero commission until sales exceed the threshold.
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