Work, pay & shifts
Base Salary Plus Commission vs Commission Only
A job with a base salary and a small commission and one with commission only can pay the same at one level of sales and very differently at others. Finding that level — the break-even — is the quickest way to compare them. This guide works through the comparison and the other things that matter besides the average.
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How each plan pays
Base plus commission pays a fixed amount whatever you sell, plus a smaller rate on sales. Commission only pays a larger rate and nothing fixed. The base buys stability; the higher rate pays off once sales are high enough.
Finding the break-even
Compare $3,000 a month plus 4% with 10% commission only. They pay the same when 3,000 + 0.04 × sales = 0.10 × sales, which is $50,000 a month.
| Monthly sales | Base $3,000 + 4% | Commission only, 10% |
|---|---|---|
| $20,000 | $3,800.00 | $2,000.00 |
| $40,000 | $4,600.00 | $4,000.00 |
| $50,000 | $5,000.00 | $5,000.00 |
| $60,000 | $5,400.00 | $6,000.00 |
| $80,000 | $6,200.00 | $8,000.00 |
How much of your pay is commission
At $60,000 of sales, the base-plus plan pays $2,400 of commission out of $5,400 — about 44% of total pay. Under commission only, it is 100%. The higher that share, the more your income moves with your sales.
Same average, different months
If sales alternate between $20,000 and $80,000, both plans average $5,000 a month. But base plus commission pays $3,800 and $6,200, while commission only pays $2,000 and $8,000. The lean months are the ones to plan for.
What else to compare
- Quota, and whether commission starts only above it.
- Draws against commission, and whether they must be repaid.
- Caps on commission, or higher rates above a target.
- Benefits and paid time off, which often follow the base.
- Minimum wage: non-exempt employees on commission only must still earn at least minimum wage for the hours they work; outside salespeople are generally exempt.
Base Plus Commission FAQ
- Is base plus commission better than commission only?
- It is better below the break-even level of sales and worse above it. Compare at the sales you realistically expect.
- How do I compare two commission job offers?
- Work out monthly pay under both at low, expected, and high sales, and find the break-even where they are equal.
- What is OTE in a sales job?
- On-target earnings: base pay plus the commission you would earn at 100% of quota.
- What does a 60/40 pay mix mean?
- At target, 60% of pay is base and 40% is variable commission or bonus.
- Do commission-only jobs have to pay minimum wage?
- For non-exempt employees, yes — total pay for the hours worked must reach minimum wage. Outside sales roles are usually exempt from that rule.
Related guides
- Calculating CommissionThe commission formula, what usually counts as commissionable sales, and how percentage, flat-per-sale, and mixed plans compare at different sale sizes.
- Returns and ChargebacksHow returns reduce commission: net-sales plans, chargebacks on commission already paid, flat per-sale amounts, and when commission counts as earned.
Open the tool
Jump into Sales Commission Calculator when you are ready to process your files.
