Commission tiers, accelerators & caps (with examples)

If your commission plan feels like it “changes the rules” mid‑year, you’re probably seeing one (or all) of these features: tiers, accelerators, and caps. They’re common in Sales and RevOps plans because they protect the company’s budget while still rewarding over‑performance.

1) Tiers (rate changes by revenue band)

A tier means your commission rate depends on which revenue band a deal (or your cumulative revenue) falls into. Tiers are usually written like a table.

• $0 – $100k at 5%
• $100k – $250k at 7%
• $250k+ at 9%

How tiers are applied varies. Plans usually use one of these methods:

• Blended tiers (most common): each band is paid at its own rate (like tax brackets).
• Cliff tiers: once you cross a threshold, the higher rate applies to all eligible revenue.

Worked example (blended tiers)

Deal size: $180,000

• First $100,000 at 5% → $5,000
• Next $80,000 at 7% → $5,600
• Total commission = $10,600

2) Accelerators (rate increases after quota)

An accelerator increases your payout after you hit a milestone — usually 100% quota attainment. Instead of changing tiers by revenue band, accelerators change the payout by attainment.

Common structures:

• Multiplier: above quota, you earn a multiplier (e.g., 1.25×) on your normal rate.
• Step rate: rate itself increases (e.g., 5% → 7% after 100%).
• Ramp accelerator: 1.0× up to 100%, then 1.1× to 120%, then 1.25× to 150%, etc.

Worked example (multiplier)

Base rate: 6%. Accelerator: 1.25× above 100% attainment.

If your year‑to‑date attainment is 115%, an eligible $50,000 deal would pay:

• $50,000 × 6% × 1.25 = $3,750

3) Caps (limits on payout, revenue, or rate)

A cap limits how much you can earn — but “cap” can mean different things. If your plan has a cap, you should know what exactly is capped and when it resets.

• Payout cap: “Maximum commission $X per period.”
• Eligible revenue cap: “Only first $Y is eligible for commission.”
• Rate cap: “Rate cannot exceed Z% even with accelerators.”
• Deal cap: “Any single deal payout cannot exceed $X.”

Cap checklist (ask these 5 questions)

• Is the cap per month, quarter, or year?
• Does it cap payout or eligible revenue?
• What happens above the cap: deferred, forfeited, or paid at lower rate?
• Does the cap apply before or after accelerators?
• Are there exceptions for strategic accounts or multi‑year contracts?

How to model your plan (fast)

To avoid surprises, model the plan with the exact rule order. Many disputes happen because someone assumes tiers are “cliff” when they’re actually blended, or applies accelerators to the wrong revenue bucket.

1. Start with your base rate.
2. Apply tiers (if tiered by revenue band).
3. Apply accelerator (if attainment ≥ threshold).
4. Apply caps (payout, revenue, or deal caps).

Tip: If your company uses a draw, clawback, or has special rules for renewals, write those down separately — they change the payout but aren’t “tiers/accelerators/caps” themselves.

Quick FAQ

Are accelerators the same as tiers?

No. Tiers change rate by revenue band. Accelerators change payout by attainment milestone.

Why do plans include caps?

Budget predictability. Caps prevent rare edge cases from breaking the comp model — but they must be clearly disclosed and consistently applied.

What’s the most common misunderstanding?

Whether tiers are blended or cliff, and whether accelerators apply to all revenue or only revenue above quota.

Use the calculator to plug in your numbers and see the breakdown step‑by‑step.