A commission is one of the most common ways a company compensates the salesperson who plays a key role in boosting the company’s sales. A commission is the best way for a company to reward its employees. Salespersons are tasked with increasing the company’s sales so that they can earn a percentage of commission from each sale. This is very beneficial for salespersons, as they receive extra money beyond their basic salary.
Although the companies find it very feasible to pay commissions to salespersons, as they play a key role in boosting the company’s sales, the company must also consider the costs it will incur when paying commissions to its employees. For this purpose, the sales commission and costing calculator are used.
What is a sales commission & costing calculator?
A sales commission and costing calculator is a computing tool used to calculate the commission to be given to salespersons, as well as the cost to the company that will incur while paying the commission.
File: Excel (.xls) and iPad
Size 28 KB
Importance of using the sales commission and costing calculator
A company that pays sales commissions to its salespeople calculates them for each individual. This tool is crucial for a company to use when determining whether it is sound to pay a specific amount of commission to the salesperson.
There are many factors on which the calculation of sales commission and cost depends. A company must consider all these factors to ensure that it has made the calculation accurately.
Every business sells its products and services, and then pays a commission to its salespersons based on the sales they generate. This is known as profit-based commission.
Sales commission and costing calculator template
Most people want to calculate the total commission they have to pay to their salespersons, but they also want to know how much it will cost them. For this purpose, they use the calculator. Unfortunately, most people are unaware of how to use this calculator because they are unfamiliar with the factors on which this calculation depends.
The use of the template makes it easy for everyone to calculate both the commission and the cost. This template is very easy to use because it does not require the user to be highly efficient or skilled. This template has already incorporated all those parameters on which the calculation can be based. In this way, all individuals who wish to calculate the commission and cost can use this calculator without any hassle.
This template enables a person to decide whether to maintain the same percentage of commission for their salespersons or decrease it, taking into account the associated costs. In this way, this template becomes an excellent tool for helping people make some very crucial decisions.
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