Commission Tracking: Methods, Templates, and Software for Small Businesses

Whether you have two salespeople or twenty, accurate commission tracking is critical—but it can easily eat up your entire week if you’re doing it manually. Late payments, calculation errors, and frustrated employees all lead to bigger problems.

This guide breaks down three practical ways to track commissions: Manual methods, a free commission tracking spreadsheet template, and commission tracking software. 

You’ll also see options for the best commission tracking software across industries like real estate, retail, and insurance.

TL;DR: Commission tracking

Whether you’re new to commission tracking or looking to upgrade to commission management software, this TL;DR gives you the fastest way to compare methods, templates, and software. 

Methods on how to track commissions:

1. Manual tracking: Pen and paper or basic notes—works for small teams but is time-consuming and prone to errors.
2. Spreadsheet tracking: A commission tracking spreadsheet lets you calculate commissions automatically and organize sales, payouts, and employee data—ideal for teams under 10.
3. Software tracking: Sales commission tracking software automates calculations, syncs with your CRM or payroll, and reduces admin time. It’s best for growing sales teams or complex commission structures.

A free commission spreadsheet template can be basic, with fields for commission rate, automatic commission calculations, and totals by quarter, or more complex with commission data added to salary with different commission structures.

To use a spreadsheet template: 

1. Decide which kind of template you want to start with.
2. Download the file and follow the instructions in the spreadsheet to use it correctly. 
3. Review the formulas so you understand how things are calculated.
4. Add your employees and their commission rates, and keep the spreadsheet up to date as transactions occur.
5. Review calculated commissions at the end of each pay period, and mark commissions as “paid” after processing payroll.

Best commission management software for small businesses:

• Free commission tracking apps: Google Sheets, Monday.com. Trello
• Entry-level options ($20-100/month/user): Commissionly, Sales Cookie, QuotaPath
• Mid-tier options ($100-300/month/user): Spiff, Performio
• Enterprise options ($300+/month/user): CaptivateIQ, Xactly Incent Enterprise, Forma.ai

Best sales commission software by industry:

• Restaurants and retail: Payroll tools like Homebase with tip pooling or POS systems like Square and Toast for sales compensation software.
• Real estate agents: BrokerMint, kvCORE, Loftys.
• Insurance agencies: Commission Tracker, AgencyBloc, AgencyZoom, AgencyComp.
• For sales teams with 10+ reps: Spiff, QuotaPath, CaptivateIQ.

Commission tracking for teams with hourly employees and commissioned staff: Track both employee groups separately, but sync the data with your payroll. If you’re not using software, export both datasets into payroll so payouts stay accurate and compliant.

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How do you track commissions? Three methods compared

Method 1: Manual tracking (pen and paper or basic notes)

Pros:

• Free to start
• Easy for one or two sales reps
• No software training needed

Cons:

• High chance of errors
• No reporting or history tracking
• Time-consuming for payroll

Best for: Solo business owners or brand new teams starting commission tracking for the first time.

Method 2: Commission tracking spreadsheet

Pros:

• Affordable or free commission tracking
• Can use Excel or Google Sheets
• Supports automatic commission calculations and formulas
• Customizable for different commission rates or tiers

Cons:

• Still requires manual data entry
• No CRM commission tracking or real-time syncing
• Different spreadsheets make version control difficult to manage
• Harder to manage once you have 15–20 reps

Best for: Small businesses looking for a simple commission tracker template before investing in commission calculation software.

Method 3: Commission tracking software

Pros:

• Automatic commission calculation and payment tracking
• Integrates with CRM and payroll tools
• Reduces disputes and errors
• Real-time dashboards for sales reps

Cons:

• Monthly cost
• Setup and training can take time
• Advanced plans can be too complex for small teams

Best for: Businesses with 10+ reps, tiered commissions, or industries like real estate and insurance where sales commission tracking software is essential.

Free commission tracking spreadsheet template

If you’re ready to move past manual commission tracking, get started today with a free commission tracking template. Templates are perfect for small teams and support flat-rate and percentage-based commission structures.

What's included in a commission tracking template

Commission tracking templates typically include some basic features, pre-built formulas, and then you can customize them for your team.

Here’s what you can expect and look for when choosing a template:

Basic commission tracker features:

• Employee/salesperson names and info
• Sales data entry (date, amount, customer/account)
• Commission rate columns (supports flat rate or percentage)
• Automatic commission calculations
• Monthly/weekly totals
• Year-to-date tracking
• Payment status tracking (paid/unpaid)

Pre-built formulas:

• Automatic commission calculations based on sales amount × rate
• Running totals by employee
• Period-over-period comparisons
• Payment reconciliation

How to customize it:

• Add or remove employee rows
• Adjust commission rates by employee
• Modify date ranges for your pay periods
• Add custom columns for your business needs (product categories, territories, etc.)

How to use a commission tracker template

Quick start (5 steps):

1. Decide which kind of template you want to start with (something basic or more complex). 
2. Download the template (typically Excel or Google Sheets) and follow the instructions in the spreadsheet to use it correctly.
3. Review the formulas in the cells so you understand how different data points are being calculated.
4. Add your employees and their commission rates, and keep the spreadsheet up to date as transactions occur.
5. Review calculated commissions at the end of each pay period, and mark commissions as “paid” after processing payroll.

Best practices:

• Update weekly rather than waiting until month-end
• Keep a backup copy of the original template
• Save monthly versions for record-keeping
• Review calculated totals before processing payments
• Have sales reps verify their own commission totals

Template limitations to know:

• Manual data entry required (no automatic sync with your POS or CRM)
• Basic reporting only (no advanced analytics)
• Works best for straightforward commission structures
• Not ideal if you have 20+ commissioned employees

Best commission tracking software for small businesses

Free commission tracking software options

Free commission tracking apps are a good way to get started with software. Some options worth considering:

• Google Sheets + Add-ons - Truly free, unlimited users, but requires manual setup.
• Monday.com  - Free template available, but limited to small teams.
• Trello + Power-Ups - Free tier, basic tracking via cards/lists.
• Limitation: Free tools work for very simple commission tracking but usually lack automation, integrations, and robust reporting.

Paid commission tracking software (when it's worth it)

Entry-level options ($20-100/month/user/user)

Best for small teams (5-20 people) with straightforward commission structures:

• Commissionly: Cloud-based, setup friendly, supports import of sales data and basic dashboards. 
• Sales Cookie: Affordable, quick deployment, designed for small-to-medium-sized businesses. 
• QuotaPath: Good for small teams who want real-time visibility and CRM integration.

Features to expect:

• Automatic calculations
• Basic reporting
• CSV/Excel import
• Multiple commission rates
• Mobile access

Mid-tier options ($100-300/month/user)

Best for growing teams (20-50 people) or moderately complex structures:

• Spiff: Sales compensation software that integrates well with CRMs, supports tiered commissions.
• Performio: Built for mid-sized businesses, strong commission tracking and performance insights.

Added features:

• CRM integrations
• Advanced reporting and dashboards
• Multi-tier commission structures
• Team/territory management
• Payment processing integration

Enterprise options ($300+/month/user)

For large teams (50+ people) or very complex commission plans:

• CaptivateIQ: A robust platform with full commissions automation, complex formulas, and compliance support.
• Xactly Incent Enterprise: Designed for enterprise sales compensation and incentive management.
• Forma.ai: Full-stack SPM (sales performance management) including commission management, territory and quota.

Advanced features:

• Full CRM/ERP integration
• Custom commission formulas
• Real-time earnings visibility for reps
• Compliance and audit trails
• Multi-currency support

What is the best commission tracking software?

The best commission tracking software depends on your business size and needs. Below we’ve broken it down by industry and team type, like restaurants, small sales teams, and real estate agents.

For restaurants/retail with mixed hourly + commission:

• Use payroll software with commission fields OR a simple commission spreadsheet template.
• Most restaurant/retail POS systems track sales by employee already
• Homebase – Tracks hours, payroll, and automatically calculates tips.
• Square POS / Toast / Clover – Most retail and restaurant POS systems automatically track sales by employee and can export data for commission calculations.
• Alternative for small teams: Use a commission tracking spreadsheet template + Homebase for hourly payroll to keep things simple and low-cost.

For small sales teams (under 10 reps):

• Start with a commission spreadsheet template and upgrade to entry-level software when manual tracking takes 4+ hours/month.
• Google Sheets or Excel + Template – Best for starting out, especially with flat or percentage rates.
• Commissionly (entry-level) – Automates commission calculations and imports sales data.
• Sales Cookie – Simple software for small teams upgrading from spreadsheets.

For real estate agents:

• Look for real estate-specific commission tracking software (designed for agent splits, broker fees, transaction tracking).
• Many real estate CRMs include built-in commission tracking.
• BrokerMint – Real estate commission tracking software with agent splits and transaction fee tracking.
• Lofty – Real estate CRM with built-in commissions, pipelines, and reporting.
• kvCORE – All-in-one real estate CRM, lead platform, and commission tracking.

For insurance agencies:

• Industry-specific commission payment software handles carrier commissions, agent splits, and policy tracking
• Commission Tracker – Built specifically for insurance commissions, agent splits, and carrier payments.
• AgencyBloc – Insurance CRM and agency management system with commission management, policy tracking, and workflow automation.
• AgencyZoom – Sales automation, lead management, and commission tracking for insurance agencies.
• AgencyComp – Handles complex commission structures, overrides, and broker hierarchies for insurance agents.

For sales teams (10+ reps):

• Dedicated sales commission software.
• Look for CRM integration with your existing tools.
• QuotaPath – Syncs with CRMs like HubSpot/Salesforce, giving reps real-time earnings dashboards.
• Spiff – Automates complex plans, tiered commissions, bonuses, and integrates tightly with Salesforce.
• CaptivateIQ – Enterprise-level commission tracking with custom formulas, approvals, and audit trails.

Commission tracking for small businesses with mixed teams

Small businesses often manage both hourly and commission-based employees, and payroll must account for both accurately. The easiest way to do this is to keep systems separate but coordinated:

• Use time-tracking and payroll tools like Homebase for hourly employees.
• Track commissions with a spreadsheet or commission payment software. Before each payroll run, combine or sync both sets of data to make sure employees are paid correctly and total labor costs are accurate.

Keep systems separate but coordinated

Separate systems keep hourly wages and commission payouts clear and prevent errors like double payments or missed earnings. But they still need to work together during payroll.

When your time-tracking platform and commission tracker align—even if one is software and the other is a spreadsheet—you create a smooth, dispute-free payroll process with full visibility into labor costs.

Common small business scenarios

• Restaurants: Servers earn tips + drink sales commissions
• Retail stores: Associates earn per-sale bonuses
• Salons/spas: Employees earn service + product sales commissions

For the hourly side of your team, Homebase handles time tracking, scheduling, and payroll seamlessly. For commission tracking, the methods above integrate easily with your overall payroll process—keeping everything in sync without overcomplicating either system.

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Choose the right commission tracking method for your business

Choosing the right commission tracking method means balancing cost, team size, structure complexity, and future growth.

• Start with a spreadsheet if you have fewer than 10 commissioned employees, use a simple flat rate or % structure, and want zero monthly costs.
• Upgrade to software when manual tracking takes 4+ hours per pay period, you’re making calculation errors, your commission structure becomes tiered or split-based, sales reps need real-time visibility, or you have 15+ commissioned employees.

By matching the right tool (manual, spreadsheet template, or commission tracking software) to your current needs—and gradually scaling as your sales compensation grows—you keep commissions accurate, transparent, and motivating for your team. 

Frequently asked questions about commission tracking

How do you track commissions?

You can track commissions using different methods: Manual notes, a commission tracking spreadsheet, or commission tracking software. The best method for your team depends on your team size and the complexity of your commission structure.

What is the best commission tracking software?

The best commission tracking software depends on your business size and commission structure. 

• For small teams or businesses just starting, a commission tracking spreadsheet or free commission tracking software like Google Sheets or Monday.com works well. 
• For growing teams, entry-level sales commission tracking software like Performio, Everstage, or Pipedrive CRM commission tracking is a better fit.
• For larger teams with complex plans, tools like Spiff, QuotaPath, or CaptivateIQ offer full automation, CRM integration, and real-time commission dashboards.

What is 6% commission on $300,000?

6% commission on $300,000 is $18,000.

What is the website to keep track of commissions?

Websites to keep track of commissions include Google Sheets and cloud-based commission calculation software like QuotaPath, Spiff, and Commission Tracker. If you need industry-specific tools, BrokerMint is a real estate commission tracking software, while AgencyBloc and Commission Tracker are designed for insurance agencies. 

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