Growth & Organization

Salesperson Break-Even & Commission Structure

Find the revenue a salesperson must generate to cover their base salary plus commission, and check whether the commission structure is even viable.

Required revenue$106,951.87 / year
Commission at breakeven$5,347.59
Total cost at breakeven$45,347.59

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Next Decision

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Methodology

Formula: required revenue = (base salary + target net value) / (contribution margin - commission percentage). Commission is modeled as a variable cost against the same margin pool the salesperson sells into.

Assumption: if commission percentage meets or exceeds contribution margin, no revenue level makes the arrangement work, the calculation reports this as infeasible rather than a misleading number.

Limitation: for the estimator role (preparing bids rather than actively sourcing and closing business), see Estimator Hire Break-Even instead.