How It Works
Three simple steps to get accurate calculations
1
Enter price and margin
Use margin % or enter COGS per unit.
2
Set volumes
Enter current units and either expected uplift (%) or target units with a salesperson.
3
Add compensation
Hourly rate, hours/week, employer on‑cost %, commission rate (revenue or profit), and tools.
Loading Sales Hire ROI & Commission Impact...
Frequently Asked Questions
What if commission on revenue exceeds margin?
You might lose money per sale. Either reduce commission %, switch to commission on profit, or increase price/margin.
How accurate is the uplift?
Treat uplift as a planning estimate based on your lead flow, conversion rate, and follow‑up. Run conservative and optimistic scenarios and compare break‑even results.
Should I include owner time value?
If the owner is selling now, include their hourly value to reflect opportunity cost. If a salesperson reduces owner sales hours, your net profit may improve even before big volume gains.
How do discounts, refunds, and shipping affect commission fairness?
If these reduce deal value meaningfully, consider commission on net revenue or profit. This avoids overpaying on heavily discounted or high‑cost orders.
How do I handle ramp periods?
Use a smaller uplift for the first 1–2 months and/or a guaranteed hourly (draw). After ramp, raise uplift toward your steady‑state target.
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Results are estimates for informational purposes only. Consult professionals for important decisions.