What is an accelerator in a commission plan?

An accelerator is a higher commission rate that starts once a rep passes their target. It rewards selling above quota. A tiered plan is the same idea with one or more steps.

Does the higher rate apply to the whole total or only the amount above target?

In most plans only the amount above target earns the higher rate. This is called a marginal rate. Some plans pay the higher rate on everything once the rep crosses, which is more generous and more expensive. Decide which one you mean and write it down.

How do I handle a deal that crosses the target?

Split that deal at the target line. The part below target earns the base rate and the part above earns the accelerator. This needs the rep's running total for the period so you know where the line falls.

How to calculate tiered and accelerator commission

A tiered or accelerator plan pays a higher rate once a rep passes a target. The rule most people get wrong: usually only the amount above target earns the higher rate, not the whole total. Get that one thing right and the rest is arithmetic.

Marginal or retroactive

There are two ways to run a tier, and they pay very differently.

Marginal, the common one. The base rate applies up to target. The higher rate applies only to what is above. This is what most plans mean.
Retroactive. Once the rep crosses target, the higher rate applies to everything, including the sales below target. More generous, and much more expensive.

Pick one and put it in writing. Half of all commission arguments are really an argument about this.

A worked example

Say the plan is 5 percent up to a 75,000 target, and 8 percent above. A rep books 99,500 in the period.

Up to target: 75,000 at 5 percent = 3,750
Above target: 24,500 at 8 percent = 1,960
Total commission: 5,710

That is the marginal version. The retroactive version would pay 8 percent on the whole 99,500, which is 7,960. Same sales, very different cost.

The deal that crosses the line

The messy case is a single deal that takes a rep from below target to above it. You split that one deal at the target line. The part below target earns the base rate, the part above earns the accelerator. To do that you need the rep’s running total for the period, so you know where the line falls.

Why HubSpot and spreadsheets struggle

To apply a tier you need a running total across the whole period, deal by deal, in order. HubSpot’s calculated properties see one deal at a time, so they cannot tell whether a deal is above or below target. A spreadsheet can, but the formulas that split the crossing deal are fragile, and one reordered row breaks them. See can HubSpot calculate commissions.

Where Provikka fits

Provikka tracks the running total for you and splits the crossing deal at the line, so every rep sees which part earned which rate. You set the target and the bands once.

The free commission calculator does this live. Turn on the accelerator and watch the split. No signup.