Commission draw calculator
Separate the draw already paid, extra commission due and any balance carried forward. Compare recoverable and non-recoverable rules.
How to use it
- Enter only the numbers your plan actually uses.
- Check whether the plan pays on revenue, margin, or attainment.
- Use the result for planning, then confirm with your comp plan.
Last reviewed 20 August 2026
What is a commission draw?
A draw is a guaranteed minimum payment against future commission. If you earn less commission than the draw, the company still pays you the draw amount. Whether you have to pay the shortfall back is the entire question — and it splits draws into two very different things.
Recoverable draw plans: the part people misunderstand
A draw can help smooth income during ramp or slow periods, but many people interpret it as extra guaranteed compensation. In a recoverable-draw plan, that is wrong.
| Term | Meaning | Why it matters |
|---|---|---|
| Recoverable draw | Advance that must be offset by future commission. | Shortfalls can carry forward. |
| Non-recoverable draw | Advance that does not need repayment. | Provides stronger income protection. |
How the balance works
A $4,000 monthly recoverable draw, over a rep’s first six months.
| Month | Commission earned | Paid | Draw balance owed |
|---|---|---|---|
| 1 | $500 | $4,000 | $3,500 |
| 2 | $1,800 | $4,000 | $5,700 |
| 3 | $3,200 | $4,000 | $6,500 |
| 4 | $6,000 | $4,000 | $4,500 |
| 5 | $9,000 | $8,500 | $0 |
| 6 | $7,000 | $7,000 | $0 |
Five questions before accepting a draw
Model a full plan in the commission calculator, or see how a draw fits into OTE, base and commission.
Commission draw questions
What is a commission draw?
A guaranteed minimum payment against future commission. If earned commission falls short of the draw, the company pays the draw anyway. Whether the shortfall must be repaid depends on whether the draw is recoverable.
What is the difference between a recoverable and non-recoverable draw?
A recoverable draw is an advance: shortfalls build up as a balance and are deducted from later commission. A non-recoverable draw is a floor: shortfalls are written off each period and nothing carries forward.
Do I have to pay back a draw if I leave?
It depends on the agreement. Some require repayment of an outstanding recoverable balance, some deduct it from final pay, and some write it off. Deducting from final wages is restricted in several jurisdictions, so check local rules.
Is a draw the same as a base salary?
A non-recoverable draw functions much like a base salary. A recoverable draw does not - it is a loan against commission you have not yet earned, and it can leave you owing money.
How long does a draw usually last?
Commonly three to six months for a new hire ramp, though some plans run a permanent draw instead of a base salary. Ask whether any unrecovered balance is forgiven at the end of the ramp.
Reviewed 20 August 2026 by the BonusPayCalc editorial team. Gross planning estimates only — not payroll, tax, legal or HR advice. See methodology for how formulas are chosen, or report a correction.
Read the cash and balance separately
Additional cash = max(0, earned commission − current draw − opening recoverable balance). Total cash this period includes the draw already paid. A shortfall in a recoverable plan is shown as a closing balance, not a negative paycheck. In non-recoverable mode, the opening balance is ignored and the current-period shortfall is written off.
This is a period-level model. It assumes the current draw has been paid and commissions first offset the opening balance and current draw. It does not determine whether recovery from wages or on departure is permitted. Follow the actual plan and applicable payroll rules.