# Commission plan template

https://salesbond.app/tools/commission-plan-template/
Updated: 2026-11-06

# Sales Commission Plan Template and Agreement

Write a sales commission plan your reps can sign: base salary, target commission, quota, commission rate, accelerators and cap, with on-target earnings, pay mix and pay at 50% to 200% of quota worked out for you. Add the terms — what counts as a sale, payment, clawbacks, leaving — from starters by structure. Free.

Enter the company, the employee and the numbers for one year, choose the structure, then add the terms. Enter either the target commission or the commission rate. The plan updates as you type and the draft is kept in this browser until you start over. Print it or save it as a PDF for signature.

## Commission plan example

An account executive has a $60,000 base salary and a $60,000 target commission on a $600,000 quota of annual contract value: on-target earnings of $120,000, a 50:50 pay mix and a 10% base rate. Sales above quota earn 1.5 times the rate up to 150%, and twice the rate above that.

| Of quota | Commission | Total pay |
| --- | --- | --- |
| 50% | $30,000 | $90,000 |
| 100% | $60,000 | $120,000 |
| 125% | $82,500 | $142,500 |
| 150% | $105,000 | $165,000 |
| 200% | $165,000 | $225,000 |

At 125% of quota the first $600,000 earns 10% ($60,000) and the next $150,000 earns 15% ($22,500). Check a single month or a different tier set with the [commission calculator](https://salesbond.app/tools/commission-calculator/).

## Common commission structures

| Structure | Fits |
| --- | --- |
| Base salary plus commission | Most B2B roles |
| Tiered with accelerators | Rewarding top reps |
| Commission only | Agents, partners |
| Commission on gross profit | Discount-heavy sales |
| Team or split commission | SDR + AE teams |

## How to set the numbers

Start from on-target earnings for the role, split it into base and target commission (50:50 for closers, 70:30 or more for account managers), then set a quota the team can reach: many companies aim for most reps to hit it. The base rate is the target commission divided by the quota. Split the company target into fair quotas with the [sales quota calculator](https://salesbond.app/tools/sales-quota-calculator/), and track attainment each month with the [sales rep scorecard](https://salesbond.app/tools/sales-rep-scorecard/).

## Frequently asked questions

### What is a commission structure?

A commission structure sets how salespeople are paid for what they sell: the base salary, the target commission, the quota, the commission rate, any accelerators above quota and caps. Common structures are base plus commission, tiered commission with accelerators, commission only and commission on gross profit.

### What should a commission agreement include?

Who the plan is for and when it starts, the base salary, target commission and quota, the commission rate and accelerators, what counts as a sale and who gets credit, when commission is earned and paid, clawbacks, what happens when the employee leaves, how the plan can change, and both signatures.

### What is a typical sales commission rate?

There is no single rate: it follows from the plan. Divide the target commission by the quota. A $60,000 target commission on a $600,000 quota is a 10% base rate. Many B2B plans pay 5–15% of new annual contract value, with a 50:50 or 60:40 split between base salary and commission.

### What are commission accelerators?

An accelerator pays a higher rate on sales above quota, for example 1.5 times the base rate from 100% to 150% of quota and twice the rate above 150%. With a 10% base rate, the rep earns 15% and then 20% on those sales. Accelerators reward overachievement; a cap does the opposite.

### What is a clawback in a commission plan?

A clawback lets the company take back commission it paid on a deal that later falls through, for example when the customer cancels in the first months or never pays. The plan should say which events trigger a clawback, for how long, and how the money is recovered.

### Does a commission plan need to be in writing?

It should always be, and in some places the law requires a written, signed plan that explains how commission is calculated and paid. Employment rules differ by country and state, so have the plan checked by someone who knows the local rules before you use it.

### Is what I type stored or sent anywhere?

No. The plan is built in your browser and the draft is saved only in this browser so you can come back to it. Nothing you type is sent to SalesBond or anyone else, and no AI reads it. Click Start over to clear it.

Related tools: [commission calculator](https://salesbond.app/tools/commission-calculator/), [sales quota calculator](https://salesbond.app/tools/sales-quota-calculator/), [sales rep scorecard](https://salesbond.app/tools/sales-rep-scorecard/). More on sales and running a sales team on the [SalesBond blog](https://salesbond.app/blog/) and the [home page](https://salesbond.app/).

## Official sources

- [Wikipedia: Commission (remuneration)](https://en.wikipedia.org/wiki/Commission_(remuneration)) — what commission is and how it is paid to salespeople.
- [Wikipedia: On-target earnings](https://en.wikipedia.org/wiki/On-target_earnings) — base salary plus commission at 100% of quota.

**Updated on Nov 6, 2026.** This calculator is for information only and is not tax, legal or payroll advice. This is a template, not legal or tax advice. Employment and commission rules differ by country and state; have the plan checked before employees sign it.