> ## Documentation Index
> Fetch the complete documentation index at: https://docs.commissionkit.co/llms.txt
> Use this file to discover all available pages before exploring further.

# Commission Plans

> Define how commissions are calculated for your sales team

Commission plans define the rules for calculating commissions on deals. Each rep is assigned a plan, and when a calculation run is triggered, the plan determines the commission amount for each deal.

## Plan types

CommissionKit supports three plan types:

### Flat rate

A single fixed percentage applied to every deal amount. The simplest plan type.

```
$50,000 deal × 5% = $2,500 commission
```

### Tiered

Different marginal rates apply to portions of the deal as it passes each tier boundary — similar to tax brackets.

Each tier defines a `from` and `to` range with a rate. Tiers are continuous (next tier starts where the previous ends).

```
Tier 1: $0 – $25,000 at 5%
Tier 2: $25,000 – Infinity at 10%

$50,000 deal:
  First $25,000 × 5%  = $1,250
  Next  $25,000 × 10% = $2,500
  Total commission     = $3,750
```

### Accelerator

A higher rate applied to the **full deal amount** when the deal exceeds a threshold. This rewards reps for exceeding targets.

```
Base rate: 5%
Threshold: $25,000
Accelerator rate: 10%

$50,000 deal (exceeds $25,000 threshold):
  $50,000 × 10% = $5,000 commission

$20,000 deal (below threshold):
  $20,000 × 5% = $1,000 commission
```

<Tip>
  The key difference: **tiered** applies different rates to portions of the deal (marginal), while **accelerator** applies the higher rate to the entire deal when the threshold is crossed.
</Tip>

## Creating a plan

1. Go to **Settings → Plans**
2. Click **Create Plan**
3. Enter a name and select a type
4. Configure the rates based on the plan type
5. Save the plan

## Assigning plans to reps

Plans are assigned to reps in the rep management section. Each rep can have one active plan. When you run a calculation, each rep's assigned plan is used to compute their commission.