Sales Commission Calculator Benefits

Inaccurate sales compensation payments can disrupt team productivity. Learn about sales commission calculator benefits and how it can improve performance.

6 min read

Companies are dealing with an increasingly complex, competitive environment putting increased pressure on Finance and Sales Operations teams to go beyond their traditional roles. They must partner with HR, deal with management reporting cycles, and, think strategically about the direction of the business. With so much on their plate it’s critical that they save time while achieving 100 percent accuracy.

A sales commission calculator assists in attaining these goals by allowing you to:

Save Valuable Time by Ensuring Accuracy

When you use manual processes to calculate commission for your sales team, you'll likely run into many roadblocks. One of them being the excessive amount of time spent to ensure that your numbers are in on time and, most importantly, completely accurate. With an automated tool that includes a sales commission calculator, you won't have to waste excessive time and energy.

Focus on Strategic Initiatives

Right now, we can tell you that switching to a product with a commission calculator, that does the tedious work for you, allows you to focus on analyzing your plans, and making strategic adjustments rather than focusing all of your time and energy on administrative efforts.

Have Freedom to Conquer New Markets

An automated incentive plan ensures that you can easily react to the market and quickly make reflective changes to your compensation plan. When companies move into new markets, they often change their plans to incentivize reps to act a certain way, or sell a certain product. Easily make these changes and calculate bonus pay for your highest paid rep, add accelerators, or change their quota effortlessly with a sales commission calculator.

Now that you know the benefits, what are your options for calculating commissions?


Many companies start out using a spreadsheet to track their sales compensation programs because… well, because it’s there. The spreadsheet is a handy tool, but just because a task involves numeric data, it doesn’t mean the spreadsheet is perfect for the task. In fact, when it comes to compensation management, it’s outdated technology. Here are some issues:

  • Complex and cumbersome. Creating even the most basic plan within a spreadsheet involves hours of programming, testing, and fine-tuning.
  • Limited reporting options. Custom reports are beyond the reach of most spreadsheet-based compensation programs. Your sales representatives are likely in the dark when it comes to timely feedback and visibility into how well they’re performing.
  • Hard to update and automate. Be prepared to take care of changes manually. Automation is minimal at best.
  • Restricted coverage. Looking to incent at different levels according to the different products or services that your company sells? Good luck, because a simple spreadsheet application just can’t provide that sort of flexibility. Talk about a beast of a document!
  • Lacks quality assurance. It’s really no surprise that we see so many errors in spreadsheets. They don’t undergo any rigorous Quality Assurance cycle before being rolled out for use. (This is clearly not the case with production.)
  • Hoards information and knowledge. Each person creates spreadsheets differently, so handing off work is difficult. Of course, this can be advantageous to someone who wants job security, but it also means he can never rise above his current position because he’s the only person who knows the spreadsheet model. And think of how much trouble the company will be in if the person ever gets sick or wants to retire.

Automated Software

Automated sales compensation solutions remove the fear, uncertainty, and doubt found with static spreadsheets. Plus, it's not only about guarding against error, but instilling trust and improving visibility, and thus, improving sales performance.

One potential roadblock to getting off spreadsheets and on to an automated system is simply the thought of making the change, and the resources required. Plus, the word "software" can drum up anxiety on its own around the actual purchase, installation, and more.

To calm fears, Xactly recently introduced Xactly SimplyComp™,  which is the industry’s first do-it-yourself (DIY) automated sales compensation solution for businesses with up to 25 reps. Xactly SimplyComp is cloud-based and offers spreadsheet-like familiarity, so it’s easy to design, build, and manage compensation plans. From start to finish, you can purchase, install, and populate plans in minutes. Learn more about calculating commissions with Xactly SimplyComp.